What is the loan-to-value (LTV) for home equity loan and how is it calculated?
The loan-to-value (LTV) calculation for a home equity loan uses the current market value of your home, as determined by an appraiser approved by My Health Savings Bank. The current market (appraised) value is multiplied by 85% for a home equity line of credit (or 90% for a home equity installment loan). The current mortgage balance is then subtracted and the remainder is your equity. My Health Savings Bank requires all home equity loans to be secured by a second position mortgage on your home. If you have a second mortgage now, you would need to include the pay-off amount of that second mortgage in the amount you are requesting. Other liens, such as for utilities and unpaid taxes, can also reduce your equity. My Health Savings Bank requires that any liens be paid in full, included in the loan request and paid at closing or proof of payment be presented prior to closing, before a loan will be approved. If there are multiple liens that will be paid at closing, title insurance may be requ
