loan to value ratio
loan-to-value ratio. The ratio, usu. expressed as a percentage, between the amount of a mortgage loan and the value of the property pledged as security for the mortgage. • For example, an $80,000 loan on property worth $100,000 results in a loan-to-value ratio of 80% — which is usu. the highest ratio that lenders will agree to without requiring the debtor to buy mortgage insurance. — Often shortened to LTV ratio. — Also termed loan ratio. [Cases: Mortgages 145. C.J.S. Mortgages §§ 198, 200.]
