Learn how much credit you can get
LTV (Loan-to-Value) refers to the ratio between the amount of a loan and the value of the property being used as collateral. In an equity line, the LTV represents the maximum amount that a lender will allow a borrower to borrow against the value of their home.
Home Equity line LTV Calculation
Here is an example of how to calculate the loan-to-value (LTV) ratio for a home equity line of credit (HELOC):
Suppose the market value of your home is $400,000 and you have a $200,000 mortgage balance on it. Let’s say you find a lender who’s willing to give you a HELOC with 80% LTV. To calculate the equity in your home, multiply your home’s value by 80% and subtract the result from your current mortgage balance:
$400,000 X 80% = $320,000
$320,000 – $200,000 = $120,000
In this scenario, you could potentially get a credit limit of up to $120,000.*
* Disclaimer: For Illustrative purposes only
NOTE:
The LTV ratio for this example is 80%.
The higher the LTV, the more equity the borrower has in the property and the more money they can potentially borrow.
* Our HELOC lender offers up to 95% LTV
check home prices in your area
Please give me your best contact information
Learn How to Apply for an Equity Line
Rodrigo DeOliveira
Branch Manager | NMLS# 1435896
Mobile: 561-613-1935
Ideal Lending
980 N Federal Hwy, #110,
Boca Raton, FL 33432
Learn the Estimated Value of Your Home
290 Lexington Street, Waltham, Massachusetts 02452, United States
Daniela Afonso Realtor® | LIC# 9081186 Mobile: 617.201.9864 dafonso@c21ne.com Century 21 North East 290 Lexington street, Waltham MA 02452
Copyright © 2020 Danielafonsore - All Rights Reserved.
Powered by GoDaddy Website Builder
This website uses cookies.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.