In this video, Michael provides insights into the loan-to-value ratio (LTV), a critical metric that delineates the relationship between the mortgage amount and the total purchase price, expressed as a percentage. The LTV is a significant factor in various loan types, influencing the terms and conditions of the mortgage. Michael breaks down the concept, shedding light on how different loan types are associated with distinct loan-to-value ratios. Understanding the LTV is pivotal for borrowers, helping them grasp the financial dynamics and implications of their mortgage agreements.
