Whois & Analysis for youhodler.com

The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased.

The term is commonly used by banks and building societies to represent the ratio of the first mortgage line as a percentage of the total appraised value of real property.

For instance, if someone borrows $130,000 to purchase a house worth $150,000, the LTV ratio is $130,000 to $150,000 or $130,000/$150,000, or 87%.

The remaining 13% represent the lender's haircut, adding up to 100% and being covered from the borrower's equity.

The higher the LTV ratio, the riskier the loan is for a lender.

A currency (from, "in circulation", from), in the most specific use of the word, refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins.

A more general definition is that a currency is a system of money (monetary units) in common use, especially in a nation.

Under this definition, US dollars, British pounds, Australian dollars, European euros and Russian ruble are examples of currency.

These various currencies are recognized stores of value and are traded between nations in foreign exchange markets, which determine the relative values of the different currencies.

Currencies in this sense are defined by governments, and each type has limited boundaries of acceptance.

The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies.

This market determines the foreign exchange rate.

It includes all aspects of buying, selling and exchanging currencies at current or determined prices.

In terms of trading volume, it is by far the largest market in the world, followed by the Credit market.

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.

It is distinct from a fee which the borrower may pay the lender or some third party.

It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs.

In finance, a loan is the lending of money by one or more individuals, organizations, and/or other entities to other individuals, organizations etc.

The recipient (i.e. the borrower) incurs a debt, and is usually liable to pay interest on that debt until it is repaid, and also to repay the principal amount borrowed.