LTV (Loan-to-Value)
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This content is provided for general educational purposes only and does not constitute financial or mortgage advice.
Definition
The loan amount divided by the property value (or purchase price), expressed as a percentage.
Explanation
LTV measures how much you are borrowing relative to the value of the home. Lower LTV often means better rates and no PMI at 80% or below.
Example
A $240,000 loan on a $300,000 home is 80% LTV.