ARSENAL > LTV

LTV

Real Estate
Definition
Loan-to-Value ratio. Loan amount divided by property value. Standard residential conventional loan: 80% LTV (you put 20% down). FHA: up to 96.5%. Commercial: typically 65-75%.

Higher LTV = less buyer equity = more risk to lender = higher interest rate + PMI requirement (residential) below 80%.
Formula
LTV = Loan amount / Property value
Example
$400K home, $80K down, $320K loan → LTV = 80%.
Related tool
Open the mortgage tool on Arsenal.finance →
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