LTV

LTV is the lender's shorthand for risk: the more equity you hold (lower LTV), the less they stand to lose, so the better your pricing and options. A $400,000 mortgage on a $500,000 home is 80% LTV.

Key LTV ceilings to know: up to 95% on an insured purchase, 80% on a refinance or HELOC-plus-mortgage combo, 65% on a stand-alone HELOC. Cross a threshold and the available products and rates change.

Because LTV is based on appraised value, a strong appraisal can lower your LTV and unlock a better tier — and a weak one can push you the other way. It's the number working quietly behind almost every approval decision.