Loan-to-Value (LTV)

Also called: LTV

Loan-to-value (LTV) is the ratio of a loan amount to the appraised or purchase value of the property securing it, expressed as a percentage. Lenders use it to assess risk; lower LTV means more borrower equity in the deal.

Example

A $6,500,000 loan on a $10,000,000 property is a 65% LTV.

Formula

Loan Amount ÷ Property Value = LTV

Excel Formula:

• B11 = Loan Amount
• B9 = Purchase Price