What is LTV (Loan to Value Ratio)?

Loan to Value shows how leveraged a property is. Higher LTV means more debt relative to value which increases risk but can amplify returns. Lower LTV means more equity and less risk.

Formula
LTV = (Loan Balance / Property Value) × 100
Good
60-75% (standard leverage)
Great
Below 60% (strong equity position)
Watch For
Above 80% often requires PMI and is vulnerable to value drops

Frequently Asked Questions

What is a good LTV for rental property?

A good LTV is 60-75% (standard leverage). A great LTV is Below 60% (strong equity position). Be cautious if Above 80% often requires PMI and is vulnerable to value drops.

Full LTV Guide →All Terms
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