Loan-to-Value
(LTV) ratio is the relationship between the amount
owed on the mortgage
and the appraised value (or sale price if it is lower)
of the home.
Example,
a $100,000 home with a $90,000 mortgage has an LTV percentage
of
90%. The remaining balance must be paid with a down payment.
Hence the required down payment would be $10,000 (or 10%).
