loan-to-value ratio

loan-to-value ratio definition - business

loan-to-value ratio

The dollar amount of a loan as a percent of the purchase price or appraised value of the asset being purchased and used as collateral. A high ratio entails greater risk to the lender.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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