Business and Personal Finance Dictionary

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• LOAN-TO-VALUE (LTV) RATIO
  
  The name used to refer to a credit analysis ratio that measures collateral coverage. To calculate the LTV ratio, the total amount of the borrower's obligations to the bank is divided by the total calculated value for the collateral. For example, if the total collateral value is estimated to be $1,000,000 and the total amount of the borrower's obligations to the bank is $800,000, then the LTV ratio is 0.80 or 80percent.
  
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