Hard money conference in Las Vegas


Loan to Value Ratio


Shown as a percentage, this is the relationship between the mortgage loan and the appraised value of the property.
A lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage.

Example:

Jim needs to borrow $92,500 to purchase a $100,000 property. The LTV ratio yields a value of about 92.5%. Since bankers usually require a ratio at a maximum of 75% for a mortgage to be approved, it may prove difficult for Jim to get a mortgage.

 


 

Useful Links