VIDEO: What is LTV?

Check out this blog by 719Lending


Today I’m reviewing what a loan-to-value ratio is and how you can figure out yours.

Need a home loan? Apply Today
Have a real estate or mortgage question? Contact Us

LTV or loan-to-value is a key part of your home loan, but it’s also a fairly simple thing to understand. LTV is the ratio between what your home is worth and how much your loan is. For example, if you buy a house for $300,000 and your mortgage is $150,000, that’s a 50% LTV. Another example: If you buy a property for $100,000 and put 20% down so you have an $80,000 mortgage, that’s an 80% LTV. Knowing your LTV can help you understand how risky buying a particular home is.

If you’re considering refinancing or just wondering what your LTV is, contact your real estate agent, and ask them to do a quick analysis of your home to find out what it’s worth. Then look at your mortgage statement to see how much you owe. Divide that payment by how much your house is worth, and that number is what your LTV is. This is also a great way to figure out how much equity you have in your home.

If you have any questions about LTVs or lending matters, please give us a call or send an email. We would love to help you.

The post VIDEO: What is LTV? appeared first on 719 Lending.