Financing-to-really worth (LTV) ratio measures up the amount of financing you happen to be hoping to borrow contrary to the appraised value of the house or property you want to purchase. Increased LTV proportion ways far more exposure once the there is increased risk of standard.

Meaning and Exemplory case of Loan-to-Worthy of Ratio

Financing-to-really worth proportion lets you know how much off a house you actually very own versus just how much your debt into mortgage you took out over purchase it.