What Is the Definition of LTV?


LTV, abbreviation for Loan-To-Value, is the ratio of net debt, excluding the fair value adjustments for debt and derivatives, to the aggregate value of properties, investments in joint ventures, funds and other investments. This ratio is used by lenders to assess whether they can recoup their money by sale of a person's assets in case of payment default.
1 Additional Answer
It represents the relationship that is expressed in terms of a rate of percentage, between the loan amount and the price of purchase of real estate that is offered as collateral. LTV indicates the amount of equity that a borrower owns in a piece of real estate.
Q&A Related to "What Is the Definition of LTV"
1. In mortgages, the ratio of the amount of a potential mortgage to the value of the property it is intended to finance, expressed as a percentage. It is used as a way to assess the
About -  Privacy -  AskEraser  -  Careers -  Ask Blog -  Mobile -  Help -  Feedback © 2014 Ask.com