Lánshlutfall
Lánshlutfall, also known as loan-to-value ratio (LTV), is a financial metric that expresses the proportion of a property's purchase price or appraised value that is financed with a loan. It is calculated by dividing the loan amount by the appraised value or purchase price and multiplying by 100 to obtain a percentage. For example, if a borrower borrows 240,000 on a property valued at 320,000, the lánshlutfall is 75%.
Lánshlutfall is used by lenders to assess risk and determine loan eligibility, down payment requirements, and
Typical ranges vary by market, but mortgage LTVs commonly fall between 60% and 80%. Higher LTV loans
Limitations: LTV is a snapshot at loan origination based on the value used at that time. It
In practice, LTV is a central concept in housing finance and risk management, influencing both borrower costs