How is loan-to-value ratio calculated?

Answer Loan-to-value ratio, or LTV ratio, is used by lenders to determine how much you are borrowing in relation to the collateral for the loan. LTV ratio is usually used in reference to home mortgages.Fo... Read More »

Top Q&A For: How is loan-to-value ratio calculated

What is loan to value ratio?

The loan-to-value ratio, also known as LTV, is a ratio of debt to asset value expressed as a percentage. For example, if a property is worth $200,000 and has a total mortgage amount of $150,000, th... Read More »

How to Figure Out Loan to Value Ratio?

The loan to value ratio (LTV) is an indicator used by lenders to quickly determine the percentage of a property's value that is mortgaged. LTV is the value of the loan in relation to the value of t... Read More »

What is the recommended loan to value ratio for a mortgage refinance?

The loan to value ratio (LTV) for a mortgage refinance is the amount of the loan divided by the value of the home. For conventional mortgages, the maximum LTV is 95 percent. For FHA mortgages, the ... Read More »

How is debt to income ratio calculated?

Debt-to-income ratio compares how much a person owes on credit cards and loans to how much that person earns. Lenders use debt-to-income ratio to determine how much you should be allowed to borrow.... Read More »