Simply stated the loan to value (LTV) is the ratio of the amount that you wish to borrow for a home to the actual value of the home. The LTV can be calculated from the actual worth of the home, the mortgage being taken and the down payment that has been made prior to the loan.
For example, the value of a house is Rs.40,00,000 and a down payment of Rs.400,000 has been made a loan of the balance amount that is Rs.36,00,000 is being sought. In this case the LTV comes to be Rs.36,00,000 of the actual value of R40,00,000, which works out to 90%. Thus the LTV is 90%.
No comments:
Post a Comment