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The ratio is the loan amount relative to a home's value.. A high loan-to-value may mean you're trying to buy more house than your down payment allows.
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Mortgage and auto lenders commonly use loan-to-value ratio. Loan-to-value ratio is the amount of your loan divided by the value of. For example, say you want to purchase a home for $200,000, which is also its appraised value.. Higher interest rate: A high LTV ratio may mean that you have to pay a.