Loan-to-value ratio (LTV) compares how much you’re borrowing to what the property is worth. You divide the loan amount by the property’s value: a $300,000 loan on a $400,000 property is a 75% LTV. A lower LTV means you hold more equity and the lender carries less risk.
Lenders cap LTV, and the ceiling is usually stricter for investment property than for a home you live in. LTV also influences your interest rate and whether mortgage insurance is required. It’s the flip side of your equity stake — the lower your LTV, the larger the share of the property you own outright.
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Written and maintained by the Aptoria editorial team
Editorial method reviewed July 28, 2026. Aptoria reviews scope, source fit, examples, limitations, links, and publication gates. This record does not claim attorney, CPA, lender, appraiser, or other independent professional sign-off.
Related terms
Investing metrics
Equity
The portion of a property you actually own — its market value minus what you still owe on it.
Investing metrics
Amortization
The schedule by which a loan is paid off over time, with each payment split between interest and principal.
Financing
PITI
PITI means the monthly principal, interest, property taxes, and homeowners insurance associated with a mortgage housing-payment estimate.
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