Mortgage Definition
LTV (Loan-to-Value Ratio)
The ratio of your mortgage amount to the home's value. An 80% LTV means you borrowed 80% of the home's value (20% down payment). Lower LTV often means better loan terms.
Why it matters
This concept influences either your monthly payment, your upfront cash requirements, or your risk profile over time. Knowing the definition helps you make cleaner rent-vs-buy decisions.
Related terms
Related tools
- Mortgage Calculator
Estimate principal, interest, taxes, insurance, and PMI in one payment view.
- Affordability Calculator
Validate your target budget and debt-to-income range before making offers.
- Closing Costs Calculator
Estimate cash-to-close so you can compare monthly and upfront costs together.
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Apply this definition to your own numbers with our calculator suite.