Loan basics

Loan-to-value (LTV)

Also known as: LTV, loan to value

Your loan amount as a percentage of the home’s value or purchase price.

Loan-to-value (LTV) compares how much you borrow to the home’s value (often the purchase price on a purchase loan, or current home value on a refinance). For example, a $400,000 home with an $80,000 down payment has a $320,000 loan and an 80% LTV. On a refinance, LTV is typically new loan amount divided by current home value. Higher LTV generally means more risk for the lender and may require PMI on a conventional loan when LTV is above 80%.

See also