Definition
A loan balance divided by the collateral's value.
Why it’s relevant today
Lenders use LTV as asset prices and underwriting standards change.
Why it matters
Higher LTV generally means less borrower cushion and more lender risk.
A loan balance divided by the collateral's value.
Lenders use LTV as asset prices and underwriting standards change.
Higher LTV generally means less borrower cushion and more lender risk.
Discussion
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