Loan-to-Value, commonly abbreviated “LTV”, is the ratio of a current or proposed loan balance to the appraisal value of the property. 

Key Takeaways:

• Formula: LTV = [Loan Amt] / [Appraisal Value]

• In a residential purchase, the inverse of LTV is the down payment.

• Normal loans w/ more than an LTV > 80% are subject to MI.