Category: Personal Service: Consumer Loans | Updated: April 29th, 2014
LTV stands for Loan-to-Value, which is basically the loan amount on a piece of collateral divided by the value of the collateral. For example, if your home is valued at $150,000 and your mortgage was $130,000, your LTV would be $130,000/$150,000, or 87%. That ratio helps a bank determine if they can make a loan, the loan's risk level, and other factors.
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