Loan-to-Value Ratio (LTV)
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Loan-to-value ratio (LTV) is the loan amount divided by the property's appraised value, expressed as a percentage.
What Loan-to-Value Ratio (LTV) means
Lower LTV means more equity and less risk, which improves pricing and can remove PMI. LTV above 80% on a conventional loan triggers private mortgage insurance.
Florida example
A Florida buyer borrowing $320,000 on a $400,000 home has an 80% LTV and avoids PMI. Putting only 10% down would push LTV to 90%, adding PMI until the balance falls back to 80% of value.
What LTV measures
The loan-to-value ratio compares your loan amount to the home's value. A $200,000 loan on a $250,000 home is an 80% LTV.
A lower LTV means more equity and less risk for the lender.
Why it matters
Your LTV affects your rate, your down payment, and whether you pay mortgage insurance. Staying at or below 80% often removes PMI.
We show how different down payments change your LTV. Apply now and we will find your best structure.
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