What is loan to value and how does it affect my rate?

Posted on Tuesday, November 13th, 2007 at 10:33 pm.

Loan to value is the amount of the loan divided by the value of the house. The higher your loan to value or LTV, the greater the risk for the lender. If you only borrowed 80% of the home's value, then you have 20% equity in the home. Most people would take care of the house and sell it to get the equity out.

The information above was provided by Laurie Lee Mead of B.F. Saul Mortgage. You can reach Laurie at llmead@bfsaulmortgage.net or 561-573-2122.

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