What is LTV Finanacing?
LTV mean Loan to Value. Example 1: A lender says they will only
finance you with an 80% LTV and your home is Worth $100,000, they
will only Finance $80,000. Example 2: Your home is worth $100,000,
and you currently have a first mortagae for $50,000, your current
LTV is 50%. You apply for a second mortgage and they will only
finance up to 90% LTV, so you are approved to borrow $40,000 for
the second. Now the property is encumbered with 2 mortgages
totaling $90,000 or 90% LTV.