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Loan to Value

Also known as: LTV

Definition: the value of a loan relative to the price of a home, expressed as a percentage of the appraised value of the home.

Examples: John purchases a $100,000 home with a $20,000 down payment and taking out a $80,000 mortgage loan to finance the rest. The LTV on John’s mortgage is (80,000/100,000 = .80) 80%.

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