For example, an $80,000 loan on a $100,000 home would have a Loan to Value Ratio of 80% ($80,000 divided by $100,000).

When doing a combo (a first mortgage with a "piggyback" second mortgage)  or a stand alone second mortgage such as a home equity loan, lenders will add ( combine ) the two loan amounts to get the CLTV, or Combined Loan to Value Ratio.

All else equal, lenders usually offer more favorable interest rates and terms on loans with a lower LTV than those with a higher ratio because the loan is more secure.