Your loan to value ratio is an important aspect of your mortgage. This ratio determines how much you can borrow if you have a mortgage or home equity loans. Here's what you need to know about money, your home loan over.
Mortgage lenders look at your home is the value of collateral to approve your loan. value of the collateral is a calculation based on how much you owe and what is the value of your home.If your house is, for example, worth $ 250,000 and you have $ 60,000, the loan to value ratio is 24%. ($ 60,000 / $ 250,000 * 100 = 24%)
Loan-to-Value Ratio
The lower this percentage, the more equity you have in your home. Mortgage lenders generally do not value ratios that are greater than 80% if the mortgage is higher than this amount, you may have interests in finding a traditional creditors to refinance your mortgage or get a homeLoans.
As a homeowner, it is better to keep uncertainty at least 80% of the loan for an economic value to protect off. If they refuse to go beyond 80% loan to value and property values, it can be concluded more than your home is worth. This can lead to serious problems with your lender. You can learn more about mortgage loans, including the most common mistakes many homeowners make, registering for a free mortgage guide.
Mortgage loan to value ratio: What You Need to Know
