Glossary

Loan-To-Value ratio (LTV)

The Loan-To-Value Ratio is a measure used to determine the maximum loan amount that can be borrowed against a property. The LTV is calculated by dividing the loan amount by the value of the property. For example, if a property is worth $1,000,000 and the investor has a $500,000 mortgage on the property, the LTV would be 50%.