Loan-to-Value (LTV) Ratio
Updated on 2023-08-29T11:59:18.277993Z
The loan-to-value or LTV ratio is an evaluation of the lending threat that financial institutions as well as other lenders investigate before mortgage approval.
Typically, the evaluations with high Loan-to-Value ratios carry greater risk and, hence, if the mortgage is permitted, the cost of loan to the borrower is high.