How do you calculate 80% LTV?
Also, how do you calculate 80 loan to value?
Conventional mortgage lenders often provide better loan terms to borrowers who have LTV ratios no higher than 80%. An LTV ratio is calculated by dividing the amount borrowed by the appraised value of the property, expressed as a percentage.
One may also ask, what does 60% LTV mean?
LTV stands for loan-to-value and, put simply, it's the size of your mortgage in relation to the value of the property you want to purchase. This means that 75% of the property's value is paid for by your mortgage and 25% is paid for out of your own money (your deposit).
DEFINITION of Maximum Loan-to-Value Ratio The maximum loan-to-value ratio is the largest allowable ratio of a loan's size to the dollar value of the property. The higher the loan to value ratio, the bigger the portion of the purchase price that was financed.