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Loan to Value Ratio Formula

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Loan to Value Ratio is a financial metric representing the proportion of a loan amount compared to the appraised value of the asset used as collateral, expressed as a percentage. Check FAQs
LTV%=(MAAPV)⋅100
LTV% - Loan to Value Ratio?MA - Mortgage Amount?APV - Appraised Property Value?

Loan to Value Ratio Example

With values
With units
Only example

Here is how the Loan to Value Ratio equation looks like with Values.

Here is how the Loan to Value Ratio equation looks like with Units.

Here is how the Loan to Value Ratio equation looks like.

74.2857Edit=(26000Edit35000Edit)⋅100
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HomeIcon Home » Category Financial » Category Mortgage and Real Estate » Category Important Formulas of Mortgage and Real Estate » fx Loan to Value Ratio

Loan to Value Ratio Solution

Follow our step by step solution on how to calculate Loan to Value Ratio?

FIRST Step Consider the formula
LTV%=(MAAPV)⋅100
Next Step Substitute values of Variables
∴ LTV%=(2600035000)⋅100
Next Step Prepare to Evaluate
∴ LTV%=(2600035000)⋅100
Next Step Evaluate
∴LTV%=74.2857142857143
LAST Step Rounding Answer
∴LTV%=74.2857

Loan to Value Ratio Formula Elements

Variables
Loan to Value Ratio
Loan to Value Ratio is a financial metric representing the proportion of a loan amount compared to the appraised value of the asset used as collateral, expressed as a percentage.
Symbol: LTV%
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Loan to Value RatioOpen Variable
Mortgage Amount
Mortgage Amount is a regularly scheduled payment which includes principal and interest paid by the borrower to the lender of the home loan.
Symbol: MA
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Mortgage AmountOpen Variable
Appraised Property Value
Appraised Property Value is the estimated monetary worth of a property determined based on various factors such as market conditions, location, size, and condition of the property.
Symbol: APV
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Appraised Property ValueOpen Variable

Other formulas in Important Formulas of Mortgage and Real Estate category

​Go Monthly Mortgage Payment
p=MA⋅R⋅(1+R)n(1+R)n-1
​Go Debt Ratio
DR=TDTA
​Go Rental Yield
RY=(ARIPV)⋅100
​Go Price per Square Foot
Psqf=PSPTsqf

How to Evaluate Loan to Value Ratio?

Loan to Value Ratio evaluator uses Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100 to evaluate the Loan to Value Ratio, The Loan to Value Ratio is a measure of the loan amount compared to the appraised value of the asset being financed. Loan to Value Ratio is denoted by LTV% symbol.

How to evaluate Loan to Value Ratio using this online evaluator? To use this online evaluator for Loan to Value Ratio, enter Mortgage Amount (MA) & Appraised Property Value (APV) and hit the calculate button.

FAQs on Loan to Value Ratio

What is the formula to find Loan to Value Ratio?
The formula of Loan to Value Ratio is expressed as Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100. Here is an example- 74.28571 = (26000/35000)*100.
How to calculate Loan to Value Ratio?
With Mortgage Amount (MA) & Appraised Property Value (APV) we can find Loan to Value Ratio using the formula - Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100.
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