The amount of a mortgage loan divided by property value. If the house is valued at $200,000 and the loan is $180,000, the loan-to-value (LTV) ratio is 80 percent. Borrowing above 80 percent LTV is considered risky by lenders, and they charge some sort of premium for it. In mortgages, borrowing more than 80 percent of the home’s value usually triggers the need for private mortgage insurance. In home equity borrowing, you must pay a higher rate.