Loan to Value (LTV) Ratio (LTV)

The relationship between the loan amount and the value of the property (the lower of appraised value or sales price), expressed as a percentage of the property's value. For example, a $100,000 home with an $80,000 mortgage has an LTV of 80 percent.

A percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased; the higher the LTV, the less cash a borrower is required to pay as down payment.

in real estate lending, the outstanding principal amount of the loan divided by the appraised value of the property underlying the loan.