The loan to value ratio is the amount of the mortgage loan against the total appraised value of the property on which the loan is secured. For example, if your property is worth $100,000 and you made a down payment of $25,000, your mortgage amount will be $75,000 and your LTV is 75% ($75,000/$100,000 = 75%). The LTV helps determine whether or not mortgage default insurance is required. LTV of 80% or less will be a conventional mortgage and will generally not need mortgage default insurance. LTV of more than 80% will be a high-ratio mortgage and will need mortgage default insurance. Other circumstances may also cause you to need mortgage default insurance.