|
The
following charts explain how to calculate the LTV -
loan to value - or CLTV - combined loan-to-value.
Loan
to Value (LTV) is calculated by dividing
the loan amount by the lower of the Sales Price or Appraised
Value on a Purchase, or Appraised Value on a Refinance.
| Sample
Calculation: |
|
|
| Loan
Amount |
|
$200,000 |
Lower
of: Sales Price, or:
Appraised Value |
÷
|
$350,000 |
| Loan-to-Value
Ratio |
= |
57.143% |
| |
|
|
Combined Loan-To-Value (CLTV)
is calculated by dividing the loan amount and any additional
subordinate financing by the lower of the Sales Price
or Appraised Value on a Purchase, or Appraised Value
on a Refinance.
| Sample
Calculation: |
|
|
| Lower
of: |
Sales
Price |
$290,000 |
| Appraised
Value |
$290,000 |
| Total
of: |
Loan
Amount |
÷ |
43,500 |
| Subordinate
Loan Amount |
232,000 |
| Combined
Loan-to-Value Ratio |
= |
95.000% |
|
