Loan to Value Ratio

Glossary of Terms Related to Commercial Mortgages and Loans

The relationship between the amount of a loan and the value of the property, expressed as a percentage, i.e. the ratio of the loan amount to the value of the property. The value used by lenders in calculating the LTV for a loan is generally the lesser of the appraised value and the purchase price, but this varied depending on lender and loan type.

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