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loan-to-value


Definition
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.

Related Terms

loan-to-cost -

Mentioned in these terms

combined loan to value ratio

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... part of the Lending & Credit and Real Estate subjects.

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