Process & Closing
What is loan-to-value ratio?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Loan-to-value (LTV) is your loan amount divided by the home's value, expressed as a percentage. Put 20% down and your LTV is 80%. Lower LTV means less risk to the lender and usually a better rate.
LTV drives whether you owe PMI, your rate tier, and how much you can cash out. As Florida values rise, your LTV drops over time, which can let you drop mortgage insurance. We track it for you.
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