What does Loan to Value (LTV) mean?

A loan-to-value (LTV) ratio is the relative difference between the loan amount and the current market value of a property, which helps lenders assess risk before approving a loan secured on the property.

A loan-to-value (LTV) ratio is the relative difference between the loan amount and the current market value of a property, which helps lenders assess risk before approving a loan secured on the property.