Your loan-to-value (LTV) ratio can play a big part in getting a mortgage. ... What does an 80% LTV ratio mean? Having an LTV ratio of 80% or less means you’ll likely receive a lower interest rate.

LTV = Loan amount / Property value For example, a $400,00o home with a 20% down payment (or $80,000) means you’ll need a mortgage for $320,000. Therefore your LTV is 80%, or $320,000/$400,000.

Conventional loan – What is a good loan-to-value ratio for a conventional loan?If you can make a 20 percent down payment, you won’t have to pay private mortgage insurance.That makes 80 percent ...

The loan-to-value ratio measures the percentage of a loan’s balance against a property’s value. For instance, if you have a $700,000 mortgage balance for a $1 million property, you have a 70% ...

At its core, LTV is the percentage of a property’s appraised value that’s financed through the loan. Imagine buying a home worth $200,000 with a $150,000 loan. In this case, the LTV ratio is 75%.

Put another way, your loan-to-value (LTV) ratio must be at least 80% to 85%. So, if your home's market value is $400,000, you'll need to have $60,000 to $80,000 in home equity to qualify for a ...

The loan-to-value ratio of your home loan affects your mortgage rate and mortgage insurance costs. Updated Mon, Jun 24 2024 Jason Stauffer Senior Reporter, CNBC Select ...