What is the Loan to Value Percentage (LTV)?
The Loan to Value Percentage, LTV for short, is the size of a desired loan in proportion to the value of the property being financed.
The LTV percentage is obtained by dividing the loan amount by the value of the property. For example, if a property is worth $200,000 and the loan reqeust is $50,000, then the loan’s LTV is 25%.
The LTV is a key factor taken into consideration when a loan request is submitted. In our experience, the lower the LTV percentage is, the easier a loan is to fund and the better the rates and terms will be.