Legal Dictionary of Pakistan

Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.

loan-to-value ratio

The ratio, usu. expressed as a percentage, between the amount of a mortgage loan and the value of the property pledged as security for the mortgage. ( For example, an $80,000 loan on property worth $100,000 results in a loan-to-value ratio of 80% - which is usu. the highest ratio that lenders will agree to without requiring the debtor to buy mortgage insurance. - Often shortened to LTV ratio. -Also termed loan ratio.