Investor Glossary-loan-value ratioInvestor Glossary-loan-value ratioInvestor Glossary-loan-value ratioInvestor Glossary-loan-value ratioInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Loan-value Ratio

The HTML to link to this page
 

In real estate finance, the loan-value ratio is simply the ratio of the value of debt to the appraised value of the property. The loan-value ratio is more often called LTV, for loan to value ratio. For example if a property is appraised at $1,000,000, a loan-value ratio of 70% implies mortgage debt for $700,000. A no money down transaction is a deal with a loan-value ratio of 100%. In the US, an important loan-value ratio is 80%. Getting financing for commercial properties is easier if the loan-value ratio is 80% or less. A residential mortgage with a higher than 80% LTV may require private mortgage insurance, or PMI. If there is more than one loan on a property or transaction, the total loan-value ratio is the ratio of the total loans to the property value.



Rate this loan-value ratio definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: quality assurance, minority interest, command economy, Zero Cost Collar, APR, annual return, Key Rate Duration, average price per share, ex-dividend date, phantom income, risk management, in escrow, EBITDA, diluted share, option premium, cancelled check, covered put, required rate of return, labor relations, VIX, balance sheet, current ratio, LIBOR, real GDP, 401a, debt service coverage, 1031 exchange, margin rate, 144a, liquidity ratio, class C shares, wholly-owned subsidiary, deferred tax, irrevocable trust, 1035 exchange, stock market close, deferred revenue, implied volatility, reverse mortgage, retained earnings, dividends payable, inflation, stock split, open position, limit order, ex-dividend, FICO score, FTSE, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use