Loan to Value Ratio (LTV)

An expression of the amount of your mortgage as a percentage of the total value of your property.


Your loan to value ratio is determined by dividing the amount you are borrowing by the appraised value of your home. It’s fairly simple: If you are borrowing $180,000 to purchase a home that is appraised at $190,000, you end up with

$180,000 ÷ $190,000 = 0.9474 x 100 = 94.74%.

Some lenders will round to the nearest whole percentage — in this case 95%.

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