PassPrep

Cách tính Loan-to-Value (LTV)

The loan-to-value ratio (LTV) is the loan amount as a percentage of the property's value or sale price, whichever is lower. Lenders use it to size the loan, set the down payment, and decide whether mortgage insurance is required.

Công thức

LTV = Loan amount ÷ Value × 100
Loan amount = Value × LTV
Down payment = Value − Loan amount = Value × (1 − LTV)

Ví dụ giải

A home is valued at $250,000 and the buyer makes a 20% down payment (LTV = 80%). • Loan amount = 250,000 × 0.80 = $200,000 • LTV = 200,000 ÷ 250,000 = 0.80 = 80% • Down payment = 250,000 − 200,000 = $50,000 (= 250,000 × 0.20) Check: 250000×0.80=200000; 200000/250000=0.80; 250000−200000=50000. ✓

Điểm chính

  • LTV uses the LOWER of appraised value or sale price — if the appraisal comes in low, the loan is based on the appraisal.
  • Down-payment % and LTV % add up to 100% (20% down = 80% LTV).
  • Above 80% LTV on a conventional loan, the borrower usually pays mortgage insurance (PMI).

Lỗi thường gặp

  • Basing LTV on price when the appraisal is lower (use the lower number).
  • Confusing the down-payment percent with the LTV (they are complements, not the same).
  • Forgetting to convert the percent to a decimal.

Khi nào dùng

LTV drives loan qualifying, mortgage-insurance rules and down-payment questions — a core finance calculation on the national exam.

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Nguồn: PSI / Pearson VUE national real-estate content outlines (finance math). Worked example self-computed and verified.