Higher Appraisal - LTV Question

[Gerard J.]

So I was wondering... a few weeks ago I received the appraisal back for a Kansas City turnkey property I'm currently buying. I purchased it for 118K with 20% down and the appraisal came back at 127K - yay!! So in the eyes of the lenders does that bring down my LTV since theoretically it's now valued higher than what I'm originally buying if for? Or is LTV always tied to the purchase price? I wondered this because if I were to be doing a refinance, wouldn't the bank be using the value from the appraisal?