BANKING AFFAIRS

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: -Lenders assess the LTV ratio to determine the level of exposure to risk they take on when underwriting a mortgage. When borrowers request a loan for an amount that is at or near the appraised value (and therefore has a higher LTV ratio), lenders perceive that there is a greater chance of the loan going into default.

Detailed explanation-4: -LTV = ARPU / User Churn The higher your user churn, the lower your lifetime value will be. You can see why paying attention to both LTV and churn is so critical. Luckily, you don’t have to manually calculate customer lifetime value.

Detailed explanation-5: -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.