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

By Matthew DiLallo – Updated Aug 16, 2024 at 1:08PM

Key Points

  • LTV ratio measures debt as a percent of asset value, crucial in evaluating loan risk.
  • For conventional loans, an 80% LTV requires mortgage insurance to protect lenders.
  • Real estate investments ideally have LTV below 70% to minimize risk and protect equity.
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