How to calculate loan to value for a home equity loan is simple. Most times when refinancing a mortgage or taking out a home equity loan lenders want to know what the loan to value is.
Why Is Loan To Value Important To Mortgage Lenders
Loan to value is important to mortgage lender because it help them to determine risk. The higher the degree of risk for the lender usually indicates a higher rate of interest and costs applied to the loan.
How Much Equity Do Need To Get A Home Equity Loan?
Loan To Value Thresholds for Home Equity Loans (location & property type can restrict loan to values)
<50% Loan to Value (best rate options for 1st & 2nd Mortgages)
<60% Loan to Value (best rate case by case options 1st & 2nd Mortgages)
<65% Loan to Value (Good market rate options 1st & 2nd Mortgages)
<70% Loan to Value (Market rate options 1st & 2nd Mortgages)
<75% Loan to Value (*Market rate options 1st & 2nd Mortgages) May have to provide more information to qualify for.
<*80% Loan to Value (case by case must show decent credit and an ability to pay) Other requirements may be required
<*85% Loan to Value (case by case conditions apply)
For assistance calculating loan to value feel free to give your BC Mortgage Broker a call. (please note that this for information purposes and only relates to British Columbia Canada.)