LTV stands for loan-to-value magnitude relation. That’s the proportion of this market price of the property you would like to finance. thus a one hundred pc LTV loan is one that permits you to borrow a complete of one hundred pc of your property price.
Related: Home equity loan vs home equity line of credit (HELOC)
When you have already got a mortgage against your home, and you would like to borrow extra money, you would possibly remove a home equity loan. It’s conjointly known as a “second mortgage” as a result of you continue to have your mortgage.
Suppose that your house is value $150,000, and your mortgage balance is $100,000. A a hundred LTV home equity loan would provide you with $50,000 in money. Your loan balances would equal your property valueUnderstand that this is often a rough estimate. Your investor can virtually definitely need AN appraisal to come back up together with your property price. Also, perceive that the majority lenders won’t lend against quite eighty or ninety p.c of your property price.