Loan-to-value, not sure what that entails
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julianna
Apprentice
Joined: 27 Oct 2005
Posts: 4
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 Posted: 03/15/09 - 04:47 Post subject: |
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| Hello there people. My name is Andrew and I would appreciate if you could tell me something about mortgages. What is necessary to get a good mortgage? I was told about loan-to-value, but I am not sure what that entails. Can you give me some explanation? Thank you very much. |
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rafael
Apprentice
Joined: 20 Jun 2008
Posts: 3
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| Posted: 03/25/09 - 03:46 Post subject: |
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| Hello there Andrew. There are many factors that can affect your mortgage deal and loan-to-value is one of them. Loan-to-value shows the ratio of your mortgage loan to the value of property. You can never get 100% of value covered by loan. That’s why you need a certain downpayment, usually aeound 20%, depending on mortgage provider. |
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vanya
Apprentice
Joined: 13 Jun 2006
Posts: 3
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| Posted: 04/04/09 - 02:44 Post subject: |
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| Hello to you too Andrew. Loan-to-value can determine your loan conditions. If it is relatively high, you will probably have higher interest rate. Other terms of the loan would also not be quite favorable. If you have good downpayment, loan terms will probably be much better. It also depends on your credit score. Anyway, I hope that you will be able to get a good mortgage. |
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julianna
Apprentice
Joined: 27 Oct 2005
Posts: 4
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| Posted: 04/14/09 - 01:43 Post subject: |
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| Hello Andrew. I agree with the post above that your credit score is very important. If your credit score is low, it would be very hard for you to get a good mortgage. What you have to do is to conduct a thorough research, because there are many differeces among mortgage providers. It would be especially hard nowadays to get a good loan, because regulation will get tougher. |
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