LTV

Definition

Loan-To-Value. 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 LTV in a sentence

The LTV was high so we decided to inform our chief financial officer of the new situation to determine the best course of action.

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The ltv would let the lender know if he could get the money back by selling the asset and I knew I would have to wait to figure it out.

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There were so many repairs that they were faced with. The roof needed to be replaced, and the windows were shot. Luckily their LTV was low enough that they could take out a home equity line to help with the expenses.

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LTM 80-10-10 mortgage