Combined Loan-to-Value

Definition

• The relationship between the unpaid principal balances of all the mortgages on a property (first and second usually) and the property's appraised value (or sales price, if it is lower).

Notes
A term used by mortgage lenders and mortgage underwriters.

Synonyms
pooled LTV, merge, blend

Acronyms
CLTV

Alternate Spellings
Combined loan to value, Combined LTV

Related Terms and Acronyms

• Loan-to-Value (LTV) — Acronym, Very Important,
  • The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
  ➥ A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
• Mortgage Application — Definition, Very Important,
  • A document in which a prospective borrower details his or her financial situation to qualify for a loan.
• Second Mortgage — Definition, Important,
  • A mortgage which ranks after a first mortgage in priority on a registered land title.