How is the Loan To Value calculated?
The first amount needed to determine the loan to value (LTV) is the lesser of purchase price and appraised value. This is determined from the price paid from the home or the value the appraiser deemed the home was worth at the time of underwriting the mortgage. (If the loan is a refinance or in New York these amounts will be the same.) The formula for calculating the LTV is the current loan balance divided by the lesser amount of purchase price or appraised value.
