horseÂ·shoe. n. 1. A flat U-shaped metal plate fitted and nailed to the bottom of a horse's hoof for protection. 2. A U-shaped object similar to a horseshoe. 3. horseshoes (used with a sing. verb) A game in which players toss horseshoes or horseshoe-shaped metal pieces at a stake so as to encircle it or come closer to it than the other players.
What is the 'Loan-To-Value Ratio - LTV Ratio'. The loan-to-value ratio (LTV ratio) is a lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage.
Lenders determine how much to loan partly based on the loan-to-value (LTV) ratio of a property. For example, if a borrower is taking out a loan of $90,000 and the property has a value of $100,000, the LTV ratio is 90 percent. Residential mortgages allow much higher LTVs than commercial loans do. A typical residential home loan might have a LTV ratio of 80 percent, meaning the loan can only be 80 percent of the estimated value of the home. Since commercial mortgages are generally securing much more expensive properties, lenders usually have commercial LVT limits of between 55 percent and 70 percent.