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Mortgage glossary
Loan-to-Value Ratio (LTV)
A percentage that compares the loan amount with the value used by the lender. For a purchase, that value is often the lower of the purchase price or appraised value, subject to program rules. LTV can affect eligibility, pricing, and mortgage insurance, but it does not determine them by itself.
In plain language
This term may appear in conversations, forms, or documents during the mortgage process. If something important changes in your situation, ask how it may affect your case before making a decision.
This explanation is general and educational. It is not personalized advice, a loan offer, or a promise of approval.