Loan to Value Ratio Solution

STEP 0: Pre-Calculation Summary
Formula Used
Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100
LTV% = (MA/APV)*100
This formula uses 3 Variables
Variables Used
Loan to Value Ratio - Loan to Value Ratio is a financial metric representing the proportion of a loan amount compared to the appraised value of the asset used as collateral, expressed as a percentage.
Mortgage Amount - Mortgage Amount is a regularly scheduled payment which includes principal and interest paid by the borrower to the lender of the home loan.
Appraised Property Value - Appraised Property Value is the estimated monetary worth of a property determined based on various factors such as market conditions, location, size, and condition of the property.
STEP 1: Convert Input(s) to Base Unit
Mortgage Amount: 26000 --> No Conversion Required
Appraised Property Value: 35000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
LTV% = (MA/APV)*100 --> (26000/35000)*100
Evaluating ... ...
LTV% = 74.2857142857143
STEP 3: Convert Result to Output's Unit
74.2857142857143 --> No Conversion Required
FINAL ANSWER
74.2857142857143 74.28571 <-- Loan to Value Ratio
(Calculation completed in 00.004 seconds)

Credits

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Created by Keerthika Bathula
Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad
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BMS College of Engineering (BMSCE), Bangalore
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Loan to Value Ratio Formula

Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100
LTV% = (MA/APV)*100

What is Loan to Value Ratio ?

The Loan-to-Value (LTV) ratio is a fundamental financial metric used in lending, especially in mortgage transactions, representing the percentage of the loan amount compared to the appraised value of the asset serving as collateral. Higher LTV ratios signify greater risk for lenders due to lower borrower equity, potentially leading to stricter loan terms, higher interest rates, or the requirement of private mortgage insurance (PMI). Understanding LTV ratios helps borrowers gauge their borrowing capacity, down payment requirements, and eligibility for various loan types, while lenders utilize this metric to assess risk levels and determine loan terms, impacting the overall lending decision.

How to Calculate Loan to Value Ratio?

Loan to Value Ratio calculator uses Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100 to calculate the Loan to Value Ratio, The Loan to Value Ratio is a measure of the loan amount compared to the appraised value of the asset being financed. Loan to Value Ratio is denoted by LTV% symbol.

How to calculate Loan to Value Ratio using this online calculator? To use this online calculator for Loan to Value Ratio, enter Mortgage Amount (MA) & Appraised Property Value (APV) and hit the calculate button. Here is how the Loan to Value Ratio calculation can be explained with given input values -> 74.28571 = (26000/35000)*100.

FAQ

What is Loan to Value Ratio?
The Loan to Value Ratio is a measure of the loan amount compared to the appraised value of the asset being financed and is represented as LTV% = (MA/APV)*100 or Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100. Mortgage Amount is a regularly scheduled payment which includes principal and interest paid by the borrower to the lender of the home loan & Appraised Property Value is the estimated monetary worth of a property determined based on various factors such as market conditions, location, size, and condition of the property.
How to calculate Loan to Value Ratio?
The Loan to Value Ratio is a measure of the loan amount compared to the appraised value of the asset being financed is calculated using Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100. To calculate Loan to Value Ratio, you need Mortgage Amount (MA) & Appraised Property Value (APV). With our tool, you need to enter the respective value for Mortgage Amount & Appraised Property Value and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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