Loan-To-Value Ratio
/ˈloʊn-tuː-ˈvæljuː ˈreɪʃiˌoʊ/
Definitions
- (n.) The ratio of a loan to the value of the asset purchased, used by lenders to assess risk in secured lending.
The lender refused the mortgage because the borrower’s loan-to-value ratio was too high.
Forms
- loan-to-value ratio
- loan-to-value ratios
Related terms
See also
Commentary
Loan-to-value ratio is a key metric in real estate and secured financing, impacting loan approvals and interest rates.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.