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LTV Definition

LTV is also known as the Loan To Value. It is the percentage between the principal amount of the loan balance, to the current value of the underlying property.

Frequently, lenders will advertise what LTV (their risk) that they are willing to loan on.

How to calculate the LTV of a property?

LTV = (loan amount / property value) * 100

As an example, let's assume you want a loan for $1,000,000 and the property is worth $1,200,000. Your LTV is:

($1,000,000 / $1,200,000) * 100 = 83.3% LTV

Return From LTV to Commercial Glossary


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