Loan-to-Value Ratio (LTV)

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Loan-to-value refers to the amount of a mortgage loan in comparison to the value of the property that has been mortgaged.

For example, if the property value is $500,000 and a down payment of $50,000 is made, the loan-to-value ratio is 90%.

This figure determines what kind of mortgage you can get and whether that mortgage will require default insurance.

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