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September 25, 2009 What is LTV (Loan to Value)?In essence, the LTV is a ratio of loan-to-value used by mortgage lenders to evaluate the risk associated with approving a mortgage loan. When trying to determine the LTV of a home on a purchase transaction, simply divide the size of the mortgage loan by the lower of an appraised value versus the sales price of the home. On a refinance transaction, simply divide the size of the mortgage loan solely by the appraised value of the home, as there
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What is LTV (Loan to Value)?
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