Loan-to-Value Ratio (LTV)
The loan amount as a percentage of the property's appraised value.
LTV measures how much of a property's value is financed by debt versus equity. A 75% LTV means the lender is providing 75% of the value and you own the other 25% as equity. Lower LTV = more equity = less risk for the lender = better rates. Most investment property refinances cap at 70-80% LTV.
LTV = Loan Balance / Property Value × 100
Kaison defaults to 75% LTV for refinance calculations. Adjust this in your underwriting thresholds if your lender offers different terms.
Refinance (Refi)
Replacing short-term acquisition debt with a long-term mortgage based on the improved value.
Equity
The difference between what a property is worth and what you owe on it.
Debt Service Coverage Ratio (DSCR)
Net operating income divided by debt payments — can the property pay its own mortgage?
Hard Money Loan
A short-term, high-interest loan backed by the property, not your credit.
Educational content only. Consult a CPA or attorney for advice specific to your situation.