what is the loan to value ltv ratio 
the loan to value ltv ratio is an assessment of lending risk that financial institutions and other lenders examine before approving a mortgage typically loan assessments with high ltv ratios are considered higher risk loans therefore if the mortgage is approved the loan has a higher interest rate additionally a loan with a high ltv ratio may require the borrower to purchase mortgage insurance to offset the risk to the lender this type of insurance is called private mortgage insurance pmi 