The loan-to-value ratio measures the percentage of the acquisition price (or current market value) encumbered by debt. To protect their invested capital in the event that property values do fall, commercial mortgage lenders generally require that the senior mortgage not exceed approximately what percentage of the acquisition price?

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Commercial mortgage lenders generally require that the senior mortgage not exceed approximately 80% of the acquisition price to protect their invested capital in the event that property values do fall.

The Loan-To-Value Ratio Measures the Percentage of the Acquisition Price