The Loan to Value Ratio is a way to compare the amount of the loan you are seeking to the appraised value of the property that secures the loan.

An LTV tells the lender just how risky the loan is. It will become a major factor in determining whether they will approve the loan or deny it.

A lower Loan to Value Ratio means that you have more equity in the property, making it less risky to lenders!
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