Glossary
Loan-to-Value (LTV)
How much you can borrow against an asset's value
Loan-to-value (LTV) is the ratio of how much you can borrow against the value of the pledged asset. An LTV of 70%, for example, means you can borrow up to $350,000 against a $500,000 home. A lower ratio means less risk of not being repaid, so it's a key tool in lending regulation.