Loan to Value (LTV) Ratio

A percentageA part of a whole, expressed in hundredths. For example 99 percent of a pie equals 99 pieces of the pie. calculated by dividing the amount borrowed by the priceThe dollar amount that was offered, asked, or actually paid for a property. or appraised valueThe value of a property at a given time, based on facts regarding the location, improvements, etc., of the homeHOME: Provides funds to local governments and states for new construction, rehabilitation, acquisition to be purchased; the higher the LTV, the less cashMoney or its equivalent (checks, banknotes, etc.). a borrowerPerson responsible for repaying a loan who has signed and agreed to the terms in the promissory note. is required to pay as down paymentThe portion of the sales contract or mortgage paid to the seller by the purchaser at the time of closing.