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How to Calculate Your Loan-to-Value Ratio

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Summary: The Loan-to-Value (LTV) ratio of a loan refers to the value of the property or the purchase price, compared to the remaining loan balance. Learn how to calculate a loan-to-value ratio to determine the ratio of outstanding debt on a property versus the market value of that property with the tips in this free video on personal finance from a licensed mortgage broker.

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By Adriel Torres
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Adriel Torres has been in the mortgage business for over a decade. He has owned two mortgage companies and is a licensed mortgage broker. Torres has been doing credit repair since...read more

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Video Transcript

"Hi so you are wondering how to calculate your ltv on your loan. Which is also known as the loan to value. No problem I'll be able to answer that. My name is Adriel Torres and I'm the owner of ultimate credit today dot com. Loan to value basically refers to the value of the property or the purchase price and the remaining loan balance. So lets say you have a property that you have a note for eighty thousand and it was purchased for a hundred thousand so your loan to value is eighty percent. Eighty percent of the one hundred thousand dollars. And that's the loan to value. In order to calculate that you would take basically the balance which is eighty divided by a hundred and that would give you twenty so you have twenty percent of equity in the property and an eighty percent loan to value. Again that's how you calculate it. My name is Adriel Torres and I'm the owner of ultimate credit today dot com. Thank you very much."

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