Oycora methodology
Loan-to-Value Ratio (LTV)
Loan principal expressed as a percentage of the applicable property value.
How this is calculated
A zero loan produces zero LTV when the value denominator is valid.
Why it matters
LTV describes leverage relative to the value basis used for the calculation.
What is included
- Loan principal
- Selected purchase, current, or after-repair value basis
What is excluded
- Closing costs
- Interest
- Operating performance
Assumptions and limitations
- The value basis must be interpreted in the context of the calculator using it.
Used in Oycora
Related learning
Financing
How Much Rental Property Can You Afford?
Rental-property affordability is about more than the maximum purchase price a lender will approve. Learn how available cash, down payment, closing costs, initial repairs, reserves, and financing work together to determine a practical price range.
Financing
When Should You Refinance a Rental Property?
Refinancing a rental property can lower debt service, improve cash flow, change the loan term, or unlock equity. Learn how to compare the current loan with a proposed refinance and decide whether the improvement is worth the closing costs and added risk.
Financing
What Is Loan-to-Value Ratio (LTV) in Real Estate?
Loan-to-value ratio shows how much of a property's value is being financed with debt. Learn how LTV is calculated, how down payments change it, why lenders care about it, and how leverage affects rental-property cash flow and risk.