Moneyhungri, Both Buyer and Seller in Fort Lauderdale, FL

What is the loan to value and how does it really impact the size of my loan? Thanks in advance Trulia.

Asked by Moneyhungri, Fort Lauderdale, FL Thu Mar 7, 2013

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The loan to value or LTV is the ratio that reflects the amount of money you borrow compared with the price or appraised value of the property you're considering to buy. All loans and lenders have specific LTV limits. If it's a 95% LTV, and you are looking for a home priced at $500,000, then you would be able to borrow up to $475,000. The LTV is a means by which lenders protect themselves from loss against borrower default. For example, higher LTV loans, typically more than 80%, require PMI (private mortgage insurance). That said the LTV ratio is not the only criteria used by lenders in assessing mortgages and a borrower's ability to pay off a loan... You may also find this link to be useful:
0 votes Thank Flag Link Thu Mar 7, 2013
The higher LTV will usually increase the cost of your monthly payment via higher interest rate or pmi
0 votes Thank Flag Link Fri Mar 8, 2013
For a fast and clear explanation of what you need to know about home loans, call a reliable mortgage banker. Preston Ware: 561-329-0077 or go to

Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
0 votes Thank Flag Link Fri Mar 8, 2013
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