Definition Loan to Value Ratio Site?go= What is loan to value ratio and how does it affect you as a prospective homeowner?
The Loan to Value ratio, or LTV, indicates the percentage of the property’s value that is mortgaged. To calculate this you can divide the appraised value of the property by the mortgage amount.
Definition Loan to Value Ratio Site?go=
A high Loan to Value ratio is over 80%– a low Loan to Value ratio is below 80%. When you have a lower LTV ratio, then you are less of a risk because you are borrowing less money.
Related: 2013 Interest Rate Forecast
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