home financing: What is Loan to Value (LTV)?
- 04/12/16 08:58 AM
The mortgage world is full of industry-specific lingo. One commonly used acronym is LTV or Loan to Value. This term is often used in the home buying or refinancing process to describe the loan amount as a percentage of the purchase price or value of the property. For example, an $80,000 loan on a $100,000 property equals an 80% LTV. You can also think of LTV as the inverse of your down payment. If you put 20% down on a home, your LTV will be 80%. The LTV may be slightly higher if costs, such as upfront mortgage insurance or other funding … (0 comments)
The mortgage world is full of industry-specific lingo. One commonly used acronym is LTV or Loan to Value. This term is often used in the home buying or refinancing process to describe the loan amount as a percentage of the purchase price or value of the property. For example, an $80,000 loan on a $100,000 property equals an 80% LTV.
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