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.
The LTV ratio is calculated as the amount of the mortgage lien divided by the appraised value of the property, expressed as a percentage. For example, a borrower taking on a $92,500 mortgage to purchase a home appraised at $100,000 would have an LTV ratio of 92.50% (92,500/100,000).