LTV (Loan-to-Value Ratio)
The loan amount as a percentage of a property's value.
Loan-to-value compares the size of a loan to the value of the asset securing it. On a home, an 80% LTV means the loan is 80% of the property's value and you hold 20% equity.
LTV drives key decisions: below 80% typically avoids PMI and unlocks better mortgage rates, while higher LTVs carry more risk for the lender and cost more.