Percentage of the Loan-to-Value Ratio
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shela
Apprentice
Joined: 31 Dec 2007
Posts: 1
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 Posted: 09/16/08 - 10:54 Post subject: |
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| Could you tell me how the Loan-to-Value Ratio and what typical percentages are? What happens if a borrower is interested in getting either a lower or a bigger ration than the typical amount? Is that possible? Some comments would be great, because it is all a bit cloudy for me to be honest. |
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bil
Apprentice
Joined: 07 Sep 2006
Posts: 2
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| Posted: 09/24/08 - 16:28 Post subject: |
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| The usual percentage is 80 per cent, in so far as I have seen. Higher percentages are risky for the borrower and the lender alike and can only be obtained if there are private mortgage insurance arrangements. If, on the other hand, the borrower opts for a low Loan-to-Value Ratio then he will get special deals on his mortgage. |
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cassandry
Apprentice
Joined: 29 Aug 2006
Posts: 1
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| Posted: 10/02/08 - 22:03 Post subject: |
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| Lowe Loan-to-Value Ratio borrowers get lower rates because they are lower risk borrowers, and higher Loan-to-Value Ratio get higher rates because they are higher risk borrowers. It is of course essential for the lenders to assess what type of borrower they are dealing with, as this will save them a lot of trouble in the future.. |
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