loan-to-value ratio


loan-to-value ratio
loan-to-value ( LTV) ratio
The name used to refer to a credit analysis ratio that measures collateral coverage. To calculate the LTV ratio, the total amount of the borrower's obligations to the bank is divided by the total calculated value for the collateral. For example, if the total collateral value is estimated to be $1,000,000 and the total amount of the borrower's obligations to the bank is $800,000, then the LTV ratio is 0.80 or 80percent. American Banker Glossary
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( LTV)
The ratio of money borrowed on a property to the property's fair market value ( fair value, fair market price). Bloomberg Financial Dictionary

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loan-to-value ratio loan-to-value ratio ratio

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loan-to-value ratio UK US noun [C] BANKING, FINANCE
the value of an asset related to the amount that a bank will lend someone to buy it: »

Low loan-to-value ratios carry a low risk for lenders.


Financial and business terms. 2012.

Look at other dictionaries:

  • Loan-to-value ratio — The loan to value (LTV) ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower borrows $130,000 to purchase a house worth $150,000, the LTV ratio is… …   Wikipedia

  • loan-to-value ratio — (LTV)  The ratio of the amount of money borrowed to the fair market value of the asset against which the loan is secured …   American business jargon

  • loan to value ratio — relation between the amount of a property loan in comparison with the value of the property it was used to purchase …   English contemporary dictionary

  • Loan-to-value ratio — (LTV) отношение суммы кредита к рыночной (или оценочной) стоимости залога. Чем ниже этот коэффициент, тем больше вероятность того, что при обращении взыскания выручка от продажи залога покроет расходы кредитора по предоставленной ссуде …   Ипотека. Словарь терминов

  • loan-to-value ratio — The percentage of purchase price to be financed with a mortgage. Common ratios are 80 and 90 percent. A down payment covers the rest of the purchase price …   Black's law dictionary

  • loan-to-value ratio — The percentage of purchase price to be financed with a mortgage. Common ratios are 80 and 90 percent. A down payment covers the rest of the purchase price …   Black's law dictionary

  • Loan-To-Value Ratio - LTV Ratio — A lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage. Typically, assessments with high LTV ratios are generally seen as higher risk and, therefore, if the mortgage is accepted, the… …   Investment dictionary

  • Maximum Loan-to-Value Ratio — The maximum ratio of a loan’s size to the value of the property, which secures the loan. The loan to value ratio is a measure of risk used by lenders. Different loan programs are viewed to have different risk factors, and therefore, have… …   Investment dictionary

  • Combined Loan To Value Ratio - CLTV Ratio — A ratio used by lenders to determine the risk of default by prospective homebuyers when more than one loan is used. In general, lenders are willing to lend at CLTV ratios of 80% and above to borrowers with a high credit rating. For example, let s …   Investment dictionary

  • combined loan to value ratio — ( CLTV) A measure of collateral coverage provided by a consumer borrower s residence. The borrower s total senior and subordinated loan balances divided by the appraised value of the borrower s residence. American Banker Glossary …   Financial and business terms