Loan To Value (LTV) is a term used to describe the ratio of a loan amount to the value of an asset purchased. For example, if you take out a loan for $100,000 to buy an asset worth $200,000, then your LTV would be 50%. The higher the LTV, the greater the risk for both borrower and lender; as such, many lenders require borrowers to maintain a certain level of LTV in order to qualify for a loan. It is important to consider the risks associated with high LTVs when making borrowing decisions.