Finance
Loan-to-Value Ratio (LTV)
A concise definition for the California Real Estate Exam study guide.
Definition
LTV = Loan Amount ÷ Property Value. A higher LTV indicates more lender risk. Conventional loans above 80% LTV typically require private mortgage insurance (PMI).
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 5: Finance, Mortgages & Loan Types →