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What Is a Loan-to-Value (LTV) Ratio?

By Matthew DiLallo – Updated Aug 9, 2025 at 10:43PM

Key Points

  • LTV ratio measures financial risk in a loan by comparing debt to asset value.
  • Lower LTV ratios suggest less risk, potentially resulting in lower interest rates.
  • Real estate investors use LTV ratios to evaluate property investment risks.
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