The loan-to-value ratio, or LTV, is an important measure that is used by lenders to assess the amount of the loan when compared to the appraised value of the property. It is expressed as a percentage and is a tool used to calculate the amount of the down payment that is necessary for a loan to be approved. It is a useful measure for lenders to use when evaluating the risk associated with a loan, as it can help to determine the amount of equity that the borrower has in the property. This ratio is also a key factor in determining the interest rate on a loan, as lenders are more likely to offer lower rates to those who have a higher LTV.
About the author:
Daniel H. Weberman, The Kabinet Founder – Terry I. Weberman, The Kabinet CPA
Daniel is an attorney and the founder of Kabinet. He is always here to help answer your home ownership questions as well as anything related to using your Kabinet app. Ask Daniel a question by sending an email to info@completehome.io and put “Daniel” in the subject line. This is a complimentary service as part of Kabinet’s commitment to you!
Note
Daniel, The Kabinet Founder, has made every effort to ensure the accuracy of the information within this article was correct at time of publication. He does not assume and hereby disclaims any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from accident, negligence, or any other cause. Speak to your advisor to make sure you qualify for such benefits or opportunities. Do not rely solely on this abbreviated article, it is for informational purposes only.
