Loan-To-Value Ratio definition: Copy, customize, and use instantly
Introduction
The term "Loan-To-Value Ratio" (LTV) refers to the ratio of a loan amount to the appraised value or purchase price of an asset, usually real estate. It is an important metric used by lenders to assess the risk of a loan. A higher LTV ratio indicates higher risk for the lender.
Below are various examples of how "Loan-To-Value Ratio" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Loan-To-Value Ratio" as a lending standard
This definition ties "Loan-To-Value Ratio" to its application in lending standards.
"Loan-To-Value Ratio" means the ratio of the amount of a loan to the appraised value or purchase price of the property being financed, expressed as a percentage.
Definition of "Loan-To-Value Ratio" in mortgage agreements
This definition connects "Loan-To-Value Ratio" to mortgage financing.
"Loan-To-Value Ratio" refers to the ratio of the loan amount to the appraised value of the property securing the loan, used to determine the terms and interest rates of the mortgage.
Definition of "Loan-To-Value Ratio" in real estate transactions
This definition links "Loan-To-Value Ratio" to real estate investments.
"Loan-To-Value Ratio" means the percentage of the loan amount in relation to the value of the property being purchased or refinanced.
Definition of "Loan-To-Value Ratio" in underwriting criteria
This definition applies "Loan-To-Value Ratio" to underwriting processes.
"Loan-To-Value Ratio" refers to the ratio used by lenders during underwriting to determine the borrower’s financial stability, calculated by dividing the loan amount by the property value.
Definition of "Loan-To-Value Ratio" for investment properties
This definition connects "Loan-To-Value Ratio" to investment property financing.
"Loan-To-Value Ratio" means the ratio of a loan amount to the value of an investment property, used to assess the risk of the investment and determine loan terms.
Definition of "Loan-To-Value Ratio" in the context of refinancing
This definition links "Loan-To-Value Ratio" to refinancing terms.
"Loan-To-Value Ratio" refers to the percentage of the loan relative to the appraised value of the property when refinancing an existing loan.
Definition of "Loan-To-Value Ratio" for assessing risk
This definition ties "Loan-To-Value Ratio" to risk assessment.
"Loan-To-Value Ratio" means a financial metric used to assess the risk of a loan, calculated by dividing the loan amount by the property value and expressed as a percentage.
Definition of "Loan-To-Value Ratio" in credit risk evaluations
This definition connects "Loan-To-Value Ratio" to credit risk.
"Loan-To-Value Ratio" refers to the ratio that lenders use to assess the risk of a borrower defaulting, calculated by dividing the loan amount by the appraised value of the collateral.
Definition of "Loan-To-Value Ratio" for commercial loans
This definition applies "Loan-To-Value Ratio" to commercial lending.
"Loan-To-Value Ratio" means the ratio of the commercial loan amount to the appraised value of the commercial property, which affects the loan’s interest rate and terms.
Definition of "Loan-To-Value Ratio" for mortgage insurance
This definition links "Loan-To-Value Ratio" to mortgage insurance requirements.
"Loan-To-Value Ratio" refers to the ratio of the mortgage loan amount to the appraised value of the property, which determines whether mortgage insurance is required.
Definition of "Loan-To-Value Ratio" in financial covenants
This definition ties "Loan-To-Value Ratio" to financial covenant terms.
"Loan-To-Value Ratio" means the ratio of the loan amount to the value of the asset securing the loan, used to enforce financial covenants in loan agreements.
Definition of "Loan-To-Value Ratio" for default risk analysis
This definition applies "Loan-To-Value Ratio" to default risk assessment.
"Loan-To-Value Ratio" refers to a key indicator of default risk, calculated by dividing the loan balance by the current appraised value of the property.
Definition of "Loan-To-Value Ratio" in banking regulations
This definition connects "Loan-To-Value Ratio" to regulatory compliance.
"Loan-To-Value Ratio" means the ratio used by banks and other financial institutions to determine lending limits and ensure compliance with regulatory capital requirements.
Definition of "Loan-To-Value Ratio" for securing financing
This definition links "Loan-To-Value Ratio" to financing eligibility.
"Loan-To-Value Ratio" refers to the percentage of the property’s value that can be borrowed, affecting eligibility for loan approval and terms.
Definition of "Loan-To-Value Ratio" in property value fluctuations
This definition ties "Loan-To-Value Ratio" to fluctuations in property value.
"Loan-To-Value Ratio" means the ratio calculated by dividing the loan amount by the current market value of the property, which fluctuates based on market conditions.
Definition of "Loan-To-Value Ratio" for residential properties
This definition applies "Loan-To-Value Ratio" to residential home loans.
"Loan-To-Value Ratio" refers to the percentage of the home loan in relation to the appraised value of the property being purchased or refinanced.
Definition of "Loan-To-Value Ratio" for high-risk loans
This definition links "Loan-To-Value Ratio" to higher-risk loan assessments.
"Loan-To-Value Ratio" means the ratio used to assess the risk of high-loan mortgages or loans made to borrowers with lower credit scores, with higher ratios indicating higher risk.
Definition of "Loan-To-Value Ratio" in property insurance requirements
This definition connects "Loan-To-Value Ratio" to property insurance.
"Loan-To-Value Ratio" refers to the ratio that determines the required level of property insurance coverage, where higher ratios may necessitate more comprehensive insurance policies.
Definition of "Loan-To-Value Ratio" in the mortgage industry
This definition ties "Loan-To-Value Ratio" to the mortgage market.
"Loan-To-Value Ratio" means the ratio of the loan amount to the appraised value of the property, a critical factor in determining mortgage approval and the loan interest rate.
Definition of "Loan-To-Value Ratio" for portfolio risk management
This definition links "Loan-To-Value Ratio" to investment portfolios.
"Loan-To-Value Ratio" refers to the ratio used by investors to manage portfolio risk, particularly in real estate, by monitoring the value of the underlying assets compared to the loan amount.
Definition of "Loan-To-Value Ratio" in debt service coverage analysis
This definition applies "Loan-To-Value Ratio" to debt service evaluations.
"Loan-To-Value Ratio" means the ratio of the loan amount to the appraised property value, which is factored into the debt service coverage ratio when evaluating loan repayment capacity.
Definition of "Loan-To-Value Ratio" for asset-backed loans
This definition connects "Loan-To-Value Ratio" to asset-backed lending.
"Loan-To-Value Ratio" refers to the proportion of a loan relative to the value of the asset securing it, often used in asset-backed lending scenarios.
Definition of "Loan-To-Value Ratio" for financing strategies
This definition ties "Loan-To-Value Ratio" to financial planning.
"Loan-To-Value Ratio" means the ratio calculated by dividing the loan amount by the value of the collateral, which is a key factor in determining financing options and strategies.
Definition of "Loan-To-Value Ratio" for auto loans
This definition applies "Loan-To-Value Ratio" to car financing.
"Loan-To-Value Ratio" refers to the ratio of the loan amount to the market value of the vehicle being financed, used to assess the terms of the auto loan.
Definition of "Loan-To-Value Ratio" in lease financing
This definition connects "Loan-To-Value Ratio" to lease agreements.
"Loan-To-Value Ratio" means the ratio used in lease financing, calculated by dividing the loan amount by the value of the leased asset.
Definition of "Loan-To-Value Ratio" for commercial real estate
This definition ties "Loan-To-Value Ratio" to commercial property loans.
"Loan-To-Value Ratio" refers to the ratio used by lenders in commercial real estate transactions, calculated by dividing the loan amount by the appraised value of the commercial property.
Definition of "Loan-To-Value Ratio" in risk management for lenders
This definition links "Loan-To-Value Ratio" to risk management practices.
"Loan-To-Value Ratio" means the ratio used by lenders to evaluate the risk of providing a loan, calculated by dividing the loan amount by the value of the asset securing the loan.
Definition of "Loan-To-Value Ratio" for investment risk in real estate
This definition connects "Loan-To-Value Ratio" to real estate investment analysis.
"Loan-To-Value Ratio" refers to the ratio that investors use to assess the risk of financing a real estate investment, calculated by dividing the loan amount by the property’s appraised value.
Definition of "Loan-To-Value Ratio" in securitization
This definition ties "Loan-To-Value Ratio" to securitized loans.
"Loan-To-Value Ratio" means the ratio calculated by dividing the loan amount by the value of the asset securing the loan, important in the context of securitization transactions.
Definition of "Loan-To-Value Ratio" in banking policy
This definition applies "Loan-To-Value Ratio" to banking regulations.
"Loan-To-Value Ratio" refers to the ratio used by financial institutions to determine lending policies and limits, based on the ratio of the loan to the appraised value of the collateral.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.