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Loan-to-value (LTV) is a financial term used to express the ratio of a loan to the value of an asset purchased. For example, if a borrower wants to buy a house valued at $200,000 and takes out a mortgage of $160,000, the LTV would be 80% (calculated as $160,000 divided by $200,000). This ratio is important for lenders as it helps assess risk; a higher LTV indicates more risk for the lender.

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2mo ago

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