Loan to Value Calculator
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Loan to Value Calculator FAQs
- What is Loan to Value (LTV) ratio?
It is the ratio of the loan amount to the appraised value of the property being purchased. It is used to assess the risk of lending. - Why is LTV important?
LTV helps lenders determine the risk in giving a loan. A higher LTV means more risk. - What is a good LTV ratio?
A lower LTV ratio is preferable. An LTV ratio of 80% or below is considered good in most cases. - What is a high LTV ratio?
An LTV ratio over 80% can lead to higher interest rates or the requirement for private mortgage insurance (PMI). - How can I improve my LTV ratio?
To improve your LTV, you can either make a larger down payment or increase the value of the property. - What is the maximum LTV for a home loan?
The maximum LTV ratio for a home loan in India is typically 90% for loans up to ₹30 Lakhs, 80% for loans above ₹30 Lakhs. - How is LTV calculated?
LTV is calculated by dividing the loan amount by the appraised value of the property and multiplying the result by 100 to get the percentage. - Can LTV change over time?
Yes, if you make payments on your loan, your LTV ratio will decrease as the loan balance decreases. - Does LTV affect interest rates?
Yes, a higher LTV ratio generally means a higher risk for the lender, which may lead to higher interest rates. - Can I get a loan with a high LTV?
Yes, but the loan may come with higher rates or additional conditions like mortgage insurance.