LTV. The ratio of the fair market value of an asset to the value of the loan that will finance the purchase. Loan-to-value tells the lender if potential losses due to nonpayment may be recouped by selling the asset.

Use loan-to-value in a sentence

The loan-to-value was incredibly favorable so we proceeded with the transaction just as we had discussed, prior to today's meeting.

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History repeats itself in that we are now beginning to see greater loan-to-value ratios in home lending that once led in part to the financial crisis of 2007.

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My wife tried to talk me into buying a large house on credit and fixing it up, but I knew no lender would give me a loan on that decrepit old house when the loan-to-value ratio would be so low.

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loan-to-cost maximum loan-to-value ratio