Definition
Loan-to-value ratio, or LTV, compares the loan amount with the property value.
If you are comparing mortgage options, treat loan-to-value ratio as one piece of the total cost and risk picture, not a standalone detail.
Why It Matters
It matters because LTV can affect PMI, refinancing, pricing, and lender risk.
Simple Example
A $360,000 loan on a $400,000 home has a 90% LTV.
How to Use This Term
When you see loan-to-value ratio on a loan estimate, calculator result, or lender conversation, connect it to three practical questions: how it affects monthly payment, how it affects cash needed now, and how it affects flexibility later.