The term loan-to-value ratio is often heard during the application and make a home loan. This amount is determined by the banks or the government nationalized banks, since the value of the property offered to the customer will be charged. This report is different from various institutions and private lenders real estate.
They are usually aware that the total value of the house much more than the amount of available credit. It 's always a certain percentage of the total value of the house, and not the entire amount. This percentage is determined by the banks, calculated considering the total value of the house. Home loans are easily accessible and is now a very attractive offer and you are not aware of the fact that only a certain percentage of the amount available as a loan and the rest of the sum is referred to as a down payment is, by the borrower prior to application be arranged for a home loan.
Loan-to-Value Ratio
> Loan-to-value is the total amount of the loan and value of the home or property as consideration for the sale and offered as a loan. This is the area per square meter of area and the total value of the house. This is also a lot like real estate prices are very high nowadays, and you must be prepared with this amount before applying for a home loan. For example, if the total value of the house is 20 lakhs, the amount should then be prepared to be 2 lakhs. AsProperty prices are increasing the loan-to-value ratio is reduced and the banks are holding this amount to 20% and 80% of the rest must be arranged by the customer or buyer.
Importance of the loan-to-value ratio
