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For PITI's sake: Mortgage acronyms defined

Mortgage » For PITI's sake: Mortgage acronyms defined

LTV and CLTV
LTV and CLTV © iStock

LTV and CLTV

An LTV, or loan-to-value, is one of the key ratios that lenders use to assess the risk of a loan. The ratio is the mortgage divided by the purchase price or appraised value of the property. When a property has multiple mortgages, lenders use a combined loan-to-value ratio, or CLTV.

Borrowers with an LTV or CLTV of less than 80% often get lower interest rates because lenders view such loans as less risky.

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