Frequently Asked Questions (FAQ)
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Loan to value (LTV) is a ratio comparing the amount of money a homeowner owes on his/her first mortgage versus the home’s current appraised value. Borrowers with higher LTVs usually pay a higher rate of interest because they are generally considered a greater risk of default than those with comparatively lower LTVs.
LTV is typically calculated as:
LTV = Mortgage Amount / Appraised Property Value
