Loan-to-value

Loan to value is something you come across in the world of loans, and particularly when you are looking into or researching mortgages you may well come across the term loan to value.

This is simply a mathematical ratio that says how much is being lent against the value of an asset, in percentage terms.

As a simple example, if you get a $100,000 mortgage on a house that is worth $200,000 then that is an LTV, or loan-to-value, of 50%.

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