Mortgage basics
Loan-to-value (LTV)
Also called: LTV
In short
LTV is your loan amount as a share of the home's value. A lower LTV — a bigger down payment — means less risk to the lender and often no mortgage insurance.
Loan-to-value compares the size of your loan to the appraised value or purchase price of the home, whichever the program uses. A larger down payment produces a lower LTV, and a lower LTV is less risk from the lender's point of view.
LTV drives several things at once: whether mortgage insurance is required, which programs you can use, and often the pricing you're offered. On a conventional loan, reaching a low enough LTV is what eventually lets private mortgage insurance come off.
LTV changes over time as you pay principal down and as the home's value moves, which is why it matters for refinancing and for removing mortgage insurance later.
Related
Current as of August 2026.