06/06/2026
Mortgage Term of the Day:
The Loan-to-Value Ratio compares the loan amount to the appraised value (or purchase price) of a home.
Formula:
Loan Amount ÷ Home Value = LTV %
🔹 Lower LTV = lower risk for lenders
🔹 Higher LTV may require mortgage insurance
🔹 Staying under 80% LTV helps avoid extra fees
💡 Example: Buying a $300,000 home with a $240,000 loan = 80% LTV