What is LTV?
Maclear Team
Last Update 3 maanden geleden
Loan-to-value (LTV) is calculated simply by taking the loan amount and dividing it by the value of the asset or collateral being borrowed against.
Lower LTV ratios provide greater security for investors because there is a higher probability that the collateral will cover the loan amount in case the borrower encounters difficulties.
Higher LTV ratios can offer investors better interest rates and potentially higher yields, but they also come with increased risk