loan to value ratio (noun) - a measure of loan risk used by banks, "the loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased... For instance, if a someone borrows $130,000 to purchase a house worth $150,000, the LTV ratio is $130,000 to $150,000 or $130,000/$150,000, or 87%. Loan to value is one of the key risk factors that lenders assess when qualifying borrowers for a mortgage. ... as the LTV ratio of a loan increases, the qualification guidelines for certain mortgage programs become much more strict" (Source: Wikipedia)