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 percent often get lower interest rates because lenders view such loans as less risky.