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Loan to Value Ratio

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 risk of making a particular mortgage loan. A lower loan-to-value ratio is seen as a lower risk to the lender. Most mortgage lenders require a maximum loan-to-value ratio of 75%. That is, a borrower is usually expected to pay for 25% of the value of a property out-of-pocket.

2. More broadly, a ratio of the amount of a potential loan to the asset it is intended to finance. In addition to gauging the risk involved in making the loan, it tells the borrower whether or not the loan can be repaid if he/she sells the asset. This can be important if the borrower becomes unable make payments.


See loan-to-value ratio.

Loan-to-Value Ratio (LTV)

The loan amount divided by the lesser of the selling price or the appraised value.

The LTV and down payment are different ways of expressing the same facts. See Down Payment/Down Payment and LTV.

References in periodicals archive ?
These were, without a doubt, tough negotiations," added David McCall, Director of USWA District 1 (Ohio) and Chair of the Union's LTV Negotiating Committee.
Gerard noted that today's announcement should dispel any uncertainty that may have been created when LTV management abruptly abandoned negotiations last week and filed a motion Monday in federal Bankruptcy Court seeking authorization to reject its agreements with the Steelworkers.
LTV is a broadcast, cable and new media network focused on the market niche of young, bi-lingual Latinos through a predominantly music and entertainment format.
This news release contains predictive statements with respect to the LTV bankruptcy that are intended to be made as "forward-looking" within the safe harbor protections of the Private Securities Litigation Reform Act of 1995.
LTV Steel intends to purchase its replacement taconite pellets from Minnesota and other North American sources, primarily through Cleveland-Cliffs Inc.
Tubular Products Business--Headquartered in Pittsburgh, Pennsylvania, LTV Copperweld's Tubular Products Business is the largest and most diverse manufacturer of steel tubing in North America.
LTV also announced the following management appointments, which are effective immediately.
Gregg Eisenberg, Maverick's President and CEO said, "We are pleased to reach an agreement with the LTV Corporation for the purchase of the Tubular Division.
LTV Steel previously announced plans to close the facility on February 22, 2001.
Steel Worker Benefits Plus is the Voluntary Employee Beneficiary Association (VEBA) Health and Welfare Plan arranged by and for LTV retirees and former employees with the assistance of Americana Financial.
The LTV Corporation (NYSE: LTV) received Court approval today of an interim order authorizing LTV use of its cash collections from accounts receivable and to obtain post-petition financing.
Representatives from Americana Financial, the administrator for The Retired Steel Worker Benefits Plan and Trust, a Voluntary Employee Beneficiary Association (VEBA), will be holding four informational sessions on the health benefits available to the former LTV steel workers through the VEBA.