Definition Investment-to-value ratio

Glossary: Investment-to-value ratio Investment-to-value ratio is calculated by adding the amount of money the mortgage holder/investor has invested in the mortgage to any senior liens existing on the property and then dividing that sum by the current value of the property. Investment-to-value ratio is the measure of how secure a creditor's position is and how likely the creditor is to recoup all of his or her money in the event of a foreclosure. A higher Investment-to-value ratio indicates a riskier investment. Enter your email address below for Venture Capital and Business Planning information. Business Plan Consulting Definition: Investment-to-value ratio Click here for more Investment-to-value ratio / Dictionary of Terms If you need assistance in developing a business plan, our staff of industry leading consultants can assist you in preparing a winning presentation. Contact us for a business plan quote to learn more about how we define Investment-to-value ratio and how we can help you complete your business plan today. Additional terms to learn about Investment-to-value ratio definitions Dictionary: Investment-to-value ratio business plan definition - © 2001-2004 HJ Ventures International, Inc.