Financial Education

Loan-to-Value (LTV)

Loan amount / Asset value

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Fundamental

Loan-to-Value (LTV)

Loan amount / Asset value

Definition

LTV measures loan size relative to collateral value. Higher LTV increases lender risk but allows borrowers more leverage. Mortgage LTV above 80% often requires PMI (private mortgage insurance).

Related Topics

#collateral #lending risk #leverage #down payment

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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