Mortgage Loan to Value Ratio: What You Need to Know

Your loan to value ratio is an important aspect of your mortgage. This ratio determines how much you can borrow when taking a mortgage or a home equity loan. Here's what you need to know about your home loan to value ratio. Mortgage lenders look of your home loan to value ratio when approving your loan. Ratio of loan to value is a calculation based on what is owed and what the value of your house is. If your home, for example, is worth 250,000 $, and you have $ 60,000, the loan to value ratio is 24%. ($ 60,000 / $ 250,000 * 100 = 24%) The percentage is lower than this, the more capital you have in your home. Mortgage lenders generally do not want to loan to value ratios that are greater than 80%. If your loan to value ratio is above this level you can find a non-traditional lender to refinance your mortgage or get a home equity loan. As a homeowner is better to keep at least 80% of the loan to the value of protecting you from economic uncertainty. If you go over 80% of the loan value and the decline of property values, it can be concluded that because most of your home is worth. This can lead to serious problems with the mortgagee. You can learn more about mortgages, including the most common mistakes many homeowners make, by registering for a free mortgage guidebook. To get your free mortgage guide Visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid common mistakes guides and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free guide today at: http://www. refiadvisor.com Home Equity Loan