BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Loan-To-Vehicles
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Loan-To-Value
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Loan-To-Van
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Lease-To-Value
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Detailed explanation-1: -A loan-to-value (LTV) ratio in home loan is the percentage of the property value that a bank or financial institution can lend to a property buyer. Lenders examine the LTV ratio before approving a home loan to ensure that they do not lend an amount that is higher than the property’s actual price.
Detailed explanation-2: -The loan-to-value (LTV) ratio is a measure comparing the amount of your mortgage with the appraised value of the property. The higher your down payment, the lower your LTV ratio. Mortgage lenders may use the LTV in deciding whether to lend to you and to determine if they will require private mortgage insurance.
Detailed explanation-3: -How do you calculate loan to value? You can easily work out your LTV by dividing your mortgage amount by the value of your property, then multiplying it by 100.
Detailed explanation-4: -Lenders use it to gauge a loan’s potential risk: In general, the higher the LTV ratio, the more likely it is the lender might lose money if you default on the loan, and the more likely a lender may have to foreclose on your home.