The Real Estate Encyclopedia
Loan to value ratio
Category - Real Estate Glossary - Real Estate Terminology
The ratio of the loan amount to the property valuation and expressed as a percentage. E.g. if a borrower is seeking a loan of $200,000 on a property worth $400,000 it has a 50% loan to value rate. If the loan were $300,000, the LTV would be 75%. The higher the loan to value, the greater the lender's perceived risk. Loans above normal lending LTV ratios may require additional security.
 
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Real Estate Glossary - Real Estate Terminology
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