Loan to Value Ratio

Concept of Loan to Value Ratio in the context of Real Property

A short definition of Loan to Value Ratio: The ratio, expressed as a percentage, of the amount of a loan to the value or selling price of real property. Usually, the higher the percentage, the greater the interest charged. Maximum percentages for banks, savings and loans, or government insured loans, is set by statute.

Concept of Loan to Value Ratio in the context of Real Property

A short definition of Loan to Value Ratio: The ratio, expressed as a percentage, of the amount of a loan to the value or selling price of real property. Usually, the higher the percentage, the greater the interest charged. Maximum percentages for banks, savings and loans, or government insured loans, is set by statute.