 TITLE: Understanding Loan-to-Value Ratio (LTV) CONTENT: How to Lower Your LTV\n---------------------\nGenerally speaking, reducing LTV on your loans, especially on mortgage loans, means lower total costs over the life of the loan. Because there are only two variables that determine LTV ratio—the loan amount and the value of the asset—the approaches to reducing LTV are pretty straightforward:\n*   **Make a larger down payment.** Saving for a big down payment may test your patience if you're really eager to get into a house or car, but it can be worth it in the long run.\n*   **Set your sights on more affordable targets.** Buying a home that's a little older or smaller than the house of your dreams could allow your current savings to serve as a larger portion of the purchase price.\nWhether you're applying for an auto loan or a mortgage, it's important to understand how your LTV ratio affects overall borrowing costs, what you can do to decrease LTV, and how doing so can save you money over the lifetime of a loan. END