LTV (Loan-to-Value)
Quick Summary
Loan amount divided by the property value.
ELI5 Explanation
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It measures how big the mortgage is compared with home value.
Detailed Explanation
Private lenders often cap LTV around 65% to 80% depending on location, property class, and borrower profile. Lower LTV can unlock better pricing.
Example
A $600,000 mortgage on a $1,000,000 property is 60% LTV.
Why It Matters
LTV is one of the strongest drivers of approval and rate.