An acronym often encountered in the home buying or refinancing
process, LTV describes loan amount as a percentage of the
purchase price or value of property. For example, an $80,000 loan
on a $100,000 property equals an 80% LTV.
You can also think of LTV as the inverse of your down payment. If
you put 10% down, your LTV will be 90%. The LTV may be slightly
higher if costs such as upfront mortgage insurance or other funding
fees are added to the loan amount.
If you have any questions about LTV or mortgage financing,
please give us a call. We’re happy to help.