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LeoGlossary: Loan-to-Value Ratio (LTV)

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The ratio of the loan principal (amount borrowed) to the appraised value (selling price).

For example, on a $100,000 home, with a mortgage loan principal of $80,000, the loan-to-value ratio is 80 percent. The LTV will affect programs available to the borrower; generally, the lower the LTV, the more favorable the program terms offered by lenders.

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