Duane Buziak Explains: What Is Loan to Value Ratio (LTV) and How It Shapes Your Mortgage
What is loan to value ratio? LTV is your loan amount divided by the lesser of your home’s appraised value or purchase price, and it influences your interest rate, mortgage insurance, and loan program options. This guide covers the formula, a worked $400,000 example, key LTV thresholds, and practical ways to lower your ratio before you apply.