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Help is on Way for Borrowers Struggling With Their Mortgages and D&S can help!

November 2011

 

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Mortgage FAQ

What is the meaning of Loan-to-Value or LTV?

Answer

Loan-to-Value (LTV) is a term that describes the ratio of the dollar amount or size of the loan, compared to the value of the property being purchased with that loan. To figure out what the LTV on a particular home is, for example, divide the current loan balance by the fair market value of the home. That calculation will give you a rough estimate of LTV. Your mortgage lender can give you a more precise LTV by reviewing your mortgage balance and comparing it to the appraised value of the property.

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