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  Loan-To-Value Ratio Definition
Loan-To-Value Ratio The amount of your mortgage divided by the fair market value of your home expressed as a percentage. For example, if your mortgage is $200,000 and your home is worth $250,000, your loan-to-value ratio is 80 percent. If your loan-to-value ratio were to exceed 80 percent, your lender would require you to have private mortgage insurance.

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