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Loan-to-value (LTV) is a financial term used to express the ratio of a loan to the value of an asset purchased. For example, if a borrower wants to buy a house valued at $200,000 and takes out a mortgage of $160,000, the LTV would be 80% (calculated as $160,000 divided by $200,000). This ratio is important for lenders as it helps assess risk; a higher LTV indicates more risk for the lender.

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2mo ago

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Related Questions

What is an example of using a loan to purchase an asset that increases in value over time?

An example of using a loan to purchase an asset that increases in value over time is taking out a mortgage to buy a house.


Which of the following loan types is considered an example of an unsecured loan?

A personal loan is an example of an unsecured loan, as it does not require collateral to secure the loan.


What does NAV stand for in reference to finance?

NAV stands for Net Asset Value. The net asset value for any item is fair market value minus any outstanding loan costs. For example, a home with the fair market value of $100,000 and a loan balance of $75,000 has a NAV of $25,000.


What is the index value of my home loan?

What is the index value of my home loan? How is it calculated? Also, the marging of the loan, where is calculated or comes from?


Can you change from a FHA loan to a conventional loan?

It's possible to refinance from an FHA loan to a conventional home loan, but the underwriting guidelines are different. For example, FHA allows a higher loan to value, and a lower credit score to qualify for a mortgage. See: http://www.loandepot.com/LoanOptions/FHA.aspx


What is an example of an unsecured loan?

An example of an unsecured loan is a personal loan, where the borrower does not need to provide collateral such as a house or car to secure the loan.


What is the loan value of a 2011 ctsv coupe?

loan value of Cadillac cts-v coupe


Can you provide an example of an unsecured loan?

An example of an unsecured loan is a personal loan, where the borrower does not need to provide collateral such as a house or car to secure the loan.


What does LTV in mortgage means?

LTV stands for "loan-to-value." In short, how much you're borrowing versus how much the home is worth. For example, if a home is worth $100,000 and your loan is for $80,000, then you owe 80% of the home's value, therefore the LTV is 80%.


What is the maximum loan to value LTV for a VA loan?

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What is the definition of 125 Loan?

A loan, usually a mortgage, with an initial loan amount equal to 125% of the initial property value. In other words, a 125% loan has a loan-to-value ratio (LTV ratio) of 125%.


Is a car loan an example of a secured loan?

Yes.

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