Loan-to-Value Ratio

Loan Value
Loan value refers to the maximum amount a lender is willing to extend as a loan based on collateral or the cash value of a policy.
Loan-to-Value Ratio (LTV)
The Loan-to-Value Ratio (LTV) is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. It is critical in determining the risk of a loan, especially in mortgage lending.
Loan-to-Value Ratio (LTV)
The Loan-to-Value (LTV) ratio is a financial metric used by lenders to evaluate the risk involved in lending a borrower against the value of the asset being purchased.

Accounting Terms Lexicon

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