Ratios

LTV: Loan To Value Ratio In Commercial Real Estate Loans

LTV: Loan To Value Ratio In Commercial Real Estate Loans

The loan-to-value ratio, or LTV, is a measure of the relationship between the loan amount and the value of the commercial real estate (collateral). It is used to measure, or determine risk when financing commercial property or making a commercial mortgage.

LTC: Loan to Cost Ratio In Commercial Real Estate Loans

LTC: Loan to Cost Ratio In Commercial Real Estate Loans

The loan-to-cost ratio, or LTC, is used in commercial real estate to calculate the percentage a construction or rehabilitation project's loan amount represents relative to the total project cost.