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


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