Direct answer
What does Loan-to-value ratio mean?
The loan amount expressed as a percentage of the applicable property value or price.
Exam cue: Use the value basis supplied by the question and divide loan amount by that value.
What does it look like in a question?
New York example
A $320,000 loan on a $400,000 value has an 80 percent LTV.
Common exam trap
What should you not confuse it with?
LTV is not the down payment percentage, though the two are related in a simple purchase.
Related real estate finance terms
AmortizationRepayment of debt through scheduled payments that reduce principal over time.Balloon paymentA final payment that is substantially larger than the preceding scheduled payments.Debt serviceThe scheduled principal and interest payments required on debt for a stated period.EquityThe owner's value in property after subtracting liens from the property's value for the calculation being used.ForeclosureThe legal process used to enforce a mortgage lien after default and subject the property to sale or another court-ordered remedy.MortgageA security instrument that creates a lien on real property to secure repayment of a debt.
Sources used2 references with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
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