Quote:
Originally Posted by macker
Loan to value. It is a formula used by the banks/lenders to qualify a borrower. It is basically the mortgage amount or loan amount divided by the purchase price or appraisal price and often lower of the two. Any LTV over 90% basically means the bank isn't very interested in lending to them and they have very little equity. Banks are loosening up a bit lately but still have very tight lending standards and won't budge one some of these ratios.
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Sweet. At least I've got a good chunk of equity no matter what (I think I'm in the 70-75% range for LTV right now) so there's one thing that won't bone me.