| LTV
LTV is short for
"Loan to Value" ratio. LTV is the relationship between the
amount of the mortgage loan and the appraised value of the property
expressed as a percentage. A LTV ratio of 90 means that a borrower is
borrowing 90% of the value of the property and paying 10% as a down
payment. For purchases, the value of the property is assumed to be the
purchase price, for refinances the value is determined by an
assessment. |
| CLTV
CLTV is short for
"Combined Loan to Value" ratio. CLTV implies a first and a
second mortgage "combined", and is the
relationship between the combined amount of
any mortgage loans and the appraised value of the property expressed
as a percentage. A CLTV ratio of 90 means that a borrower may borrow
90% of the value of the property and must pay 10% as a down payment.
For purchases, the value of the property is assumed to be the purchase
price, for refinances the value is determined by an assessment. |
