Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is Loan-to-Value?

April 26, 2017appraisal appraised loan-to-value Loans LTV mortgage

0

Posted

What is Loan-to-Value?

7 Answers

0

Posted

Loan-to-Value (LTV) refers to the amount of the loan as a percentage of the current market value of your home. You can calculate your LTV fairly easily by dividing your existing loan amount by current value of your home. For example, if you borrow $200,000 and your home is valued at $300,000, your loan to value is 66%. LTV is important when it comes to qualifying for a refinance loan, and will determine whether you will be required to get private mortgage insurance ( PMI) on your purchase or refinance transaction.

0

Posted

Loan-to-Value (LTV) refers to the amount of the loan as a percentage of the current market value of your home. You can calculate your LTV fairly easily by dividing your existing loan amount by current value of your home. For example, if you borrow $200,000 and your home is valued at $300,000, your loan to value is 66%. LTV is important when it comes to qualifying for a refinance loan, and will determine whether you will be required to get private mortgage insurance on your purchase or refinance transaction.

0

Posted

The loan-to-value is your loan amount divided by your property value. For example, the loan-to-value on a $100,000 house with a $75,000 loan amount is 75%.

0

Posted

Compares your total loan balances outstanding to the appraised value of the property.

0

Posted

Well, it’s exactly what it says – the loan amount compared to the value of the home you are buying or refinancing. For example, if you are buying a $100,000 home and your loan amount is only $50,000, your loan-to-value or “LTV” is 50 percent. It’s also very common to refinance a home to obtain a lower LTV and drop mortgage insurance that previously was required. Different types of loans have different minimum requirements for LTV’s. With primary residence purchases, for instance, an FHA loan can have as high as a 97.75 percent LTV (soon to change to 96.5 percent in 2009). A conventional loan can have as high as a 97 percent LTV (but more common is 95 percent LTV). VA and Rural Housing loans can have 100 percent LTV’s. People who have cash to put down on the property they are buying and financing with a conventional loan oftentimes try to amass 20 percent of the purchase price in order to avoid mortgage insurance. Mortgage insurance is required when your LTV for a primary residence is a