Lenders use a number called the loan-to-value ratio to figure out how much risk they are taking on with a secured loan. It specifies the proportion of the secured asset that the lender is willing to finance, such as a car or house. When it comes to mortgages, the ratio is especially crucial. As a matter of fact, the government organization that manages contracts determines limits that should be met to adjust to its necessities. How to calculate the ratio, how to use it, and why lenders place such a high value on it are all covered in this article.…