Loan to Value is a lending risk assessment ratio used by financial institutions and other lenders to examine a mortgage. The LTV is calculated by dividing the amount of the loan by the value of the single family rental investment property or other type of property. Most often, assessments with high LTV ratios are generally seen as higher risk and, if the mortgage is accepted, the loan will generally cost the borrower more to borrow (reflected as a higher interest rate).

Full Glossary

If after learning a bit more about Loan To Value you are curious to see how your current Investment Portfolio would benefit from performing a 1031, then I recommend signing up to receive a FREE 1031 Sizing from Conatus.

This sizing gives you info about the value of replacement properties you need to purchase and the amount of related debt on this purchase to fully defer your capital gains associated tax liability.

As an added benefit you will receive a comparison of your current income vs potential replacement property income that includes an assessment of income tax benefit between the
two.

The Conatus 1031 Sizing is your blueprint for how to maximize cash flow from trading your equity for a multiple on income.

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