Loan-to-Value
(LTV) ratio is the relationship between the amount
owed on the mortgage
and the appraised value (or sale price if it is lower)
of the home.
Example, a $100,000 home with a $90,000 mortgage
has an LTV percentage of 90%. The remaining balance
must be paid with a down payment. Hence the required
down payment would be $10,000 (or 10%).
