Mortgage Glossary
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.
Related program: Learn more →
Related Mortgage Terms
Still have questions?
Talk to a licensed Florida mortgage broker — no cost, no obligation.