- For mortgage purposes, this refers to the property value which is typically the lesser of the appraised value and the sale price.
mortgage loan, loan value, mortgage loan value, mortgage lending value
Related Terms and Acronyms
- Agreement of Sale (AOS) — Acronym,
- A document in which a property's buyer and seller approve the price and other terms of the transfer of title.
- Appraised Value — Definition,
- An educated opinion of how much a property is worth.
- Asking Price — Definition,
- The amount of money the seller requests for the property or item.
- Loan-to-Value (LTV) — Acronym, Very Important,
➥ A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
- The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
- Monetary Value — Definition,
- A property's monetary value is its worth if sold at this moment in time.
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
- Principal — Definition,
- The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
- Property Value — Definition,
- The worth of a piece of real estate, based on the price a buyer and seller would negotiate.
- Purchase Price — Definition,
- The total selling price of the home, including the cash down payment and the principal on the loan.
- Real Estate (RE) — Acronym, Very Important,
- A section of land including all the natural resources (above and below the surface) and any permanent buildings or structures located on it. Also known as "realty."
- Sale Price — Definition,
- The price that is paid for an asset.