Loan-to-value Flashcards
(3 cards)
1
Q
What is the Loan-to-value (LTV) ratio?
A
the loan as a percentage of the purchase price
The LTV ratio is a key metric in real estate financing.
2
Q
How do you calculate the loan-to-value ratio (LTV ratio)?
A
Loan amount / sales price = LTV ratio
This formula helps determine the risk of lending in real estate transactions.
3
Q
What is the Loan-to-value (LTV) ratio when given down payment?
A
price - down payment = loan amount
loan amount / sales price = LTV ratio
This method incorporates the down payment to find the LTV ratio.
