The Loan-to-Value (LTV) ratio is a measure comparing the amount you are financing with the appraised value of the property. Typically, loan assessments with high LTV ratios are considered higher-risk loans and loans with lower LTVs are better in the eyes of lenders, but require borrowers to come up with larger down payments. An LTV ratio is calculated by dividing the amount borrowed by the appraised value of the property, expressed as a percentage.