Loan-to-value (LTV) is another way to talk about down payments. Your LTV ratio compares your home value to your loan amount — or, put differently, the amount you’re borrowing after your down payment. For instance, if you put 3.5 percent down using an FHA loan, your LTV is 96.5 percent because you’re borrowing 96.5 percent of the purchase price. LTV is also important when you refinance because it shows how much you still owe on your mortgage compared to your home’s current value.