Loan-to-Value (LTV) Ratio
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How much of the home’s price is borrowed versus paid upfront. Example: If you were purchasing a home for $450,000 and you get a loan for $427,500 that is a 95% LTV. Which also means your down payment would be 5% or $22,500. Further, if your loan amount is $360,000 your LTV is 80%, down payment would be $90,000.
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