Respuesta :
The following property has a loan to value of 64%.
Loan to Value = Loan Amount / Current Appraisal of the asset
= 66,000,000 / 103,000,000
= 64.077%
= 64%
What Is the Loan-to-Value (LTV)?
- Before approving a mortgage, financial institutions and other lenders evaluate the loan-to-value (LTV) ratio as a measure of lending risk.
- Loan-to-value (LTV) is a ratio that is frequently used in mortgage lending to evaluate how much of a down payment is required and if a lender will grant credit to a borrower.
- Lenders prefer lower LTVs, but borrowers must contribute greater down payments because of this.
- When the loan-to-value ratio is at or below 80%, the majority of lenders offer mortgage and home equity applicants the lowest possible interest rate. Mortgages become more expensive for borrowers with higher LTVs.
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