In this brief explanatory video, the speaker defines the real estate term LTV (loan‑to‑value) as the ratio of the loan amount to the property's value. An example is given: putting 20% down on a house results in an 80% LTV loan. The speaker notes that lenders evaluate LTV, alongside other factors, during underwriting to decide whether to approve a loan.
Quick real estate term definition. LTV, loan-to-value. This is the amount that you are receiving in a loan compared to how much the house or the asset that you are buying is worth, the value. So if you put 20% down on the purchase of a house, you are getting an 80% loan-to-value loan. And so the LTV is something that the lenders are going to look at in addition to a number of other factors when they're underwriting and making a decision on whether to approve your loan or not.
