# Question - How is Cltv mortgage calculated?

Answered by: Rebecca King  |  Category: General  |  Last Updated: 21-06-2022  |  Views: 652  |  Total Questions: 14

The CLTV ratio is determined by adding the balances of all outstanding loans and dividing by the current market value of the property. For example, a property with a first mortgage balance of \$300, 000, a second mortgage balance of \$100, 000 and a value of \$500, 000 has a CLTV ratio of 80%. The combined loan-to-value (CLTV) ratio is the ratio of all secured loans on a property to the value of a property. Lenders use the CLTV ratio to determine a prospective home buyer's risk of default when more than one loan is used. The HCLTV is similar to the CLTV because it takes into consideration the total loans on the property. It stands for High Combined Loan to Value. The difference between the two is this ratio considers the full available line amount. For instance, let's say you take out a \$100, 000 home equity line of credit. Prior Liens Loan Value = \$800, 000. Collateral Value = \$1, 000, 000. Prior Liens = \$200, 000. Collateral LTV = 80% = \$800, 000 / \$1, 000, 000. Combined LTV = 100% = (\$800, 000 + \$200, 000) / \$1, 000, 000. Recovery Factor for Collateral = 0. 35. Effective Value = \$428, 571 = \$1, 000, 000 - (\$200, 000 / 0. 35)

### What is the formula for calculating CLV?

The calculation of CLV (WITH discounting) would be: Year 0 = – \$1, 000 acquisition costs divided by 1 (no discount) Year 1 = \$1, 000 customer profit divided by 1. 1 (10% discount) = \$909. Year 2 = \$1, 500 customer profit X 75% retention divided by 1. 21 (10% X 10% discount) = \$930.

### What is a good LTV?

https://www.investopedia.com/terms/l/loantovalue.asp

An LTV ratio of 80% or lower is considered good for most mortgage loan scenarios. An LTV ratio of 80% provides the best chance of being approved, the best interest rate, and the greatest likelihood you will not be required to purchase mortgage insurance.

### How do you calculate LTV on a mortgage?

https://www.landc.co.uk/calculators/loan-to-value/

You can do this by dividing your mortgage amount by the value of the property. You then multiply this number by 100 to get your LTV. For example, if you're buying a property worth £250, 000, and have a deposit of £50, 000, you'll need to borrow £200, 000.

### How much equity will I have in my home in 5 years?

https://www.hsh.com/home-equity/building-home-equity.html

Mortgage Prepayment Strategies You could, for example, add an extra amount to your monthly mortgage payment. On a \$200, 000 mortgage at 5%, in five years you will have accumulated \$16, 343 in home equity. But add just \$100 a month to your payment, and in five years you will have \$23, 143 in home equity.

### How do I calculate interest on a loan?

https://mozo.com.au/interest-rates/guides/calculate-interest-on-loan

Calculating interest on a car, personal or home loan Divide your interest rate by the number of payments you'll make in the year (interest rates are expressed annually). Multiply it by the balance of your loan, which for the first payment, will be your whole principal amount.

### What is my Cltv?

The CLTV ratio is determined by adding the balances of all outstanding loans and dividing by the current market value of the property. For example, a property with a first mortgage balance of \$300, 000, a second mortgage balance of \$100, 000 and a value of \$500, 000 has a CLTV ratio of 80%.

### What is the meaning of debt to income ratio?

https://en.wikipedia.org/wiki/Debt-to-income_ratio

In the consumer mortgage industry, debt income ratio (often abbreviated DTI) is the percentage of a consumer's monthly gross income that goes toward paying debts. (Speaking precisely, DTIs often cover more than just debts; they can include principal, taxes, fees, and insurance premiums as well.

### What is total loan to value?

https://pocketsense.com/total-loantovalue-8368752.html

Before issuing a loan, lenders typically like to know how much of an asset's value is currently being used as collateral for a loan. The total loan-to-value (LTV) ratio, also known as a combined loan-to-value ratio, is a measure of the total of all debts secured by an asset compared to the value of the asset itself.

### What does 60% LTV mean?

What does 'LTV' mean? LTV stands for loan-to-value and, put simply, it's the size of your mortgage in relation to the value of the property you want to purchase. This means that 75% of the property's value is paid for by your mortgage and 25% is paid for out of your own money (your deposit).

### What is the debt to income ratio for a mortgage?

https://smartasset.com/mortgage/ideal-debt-to-income-ratio-for-a-mortgage

Mortgage lenders want potential clients to be paying off a small amount of debt relative to their monthly income. If you're trying to qualify for a mortgage, it's best to keep your debt-to-income ratio below 36%. That way, you'll improve your odds of getting a mortgage with better loan terms.

### Why is Cltv ending?

https://www.nbcchicago.com/news/local/chicagos-cltv-is-shutting-down-at-end-of-the-year/2190056/

CLTV, a Chicago cable news station, will go off the air at the end of December. General manager Paul Rennie told staff in an email that it has “become increasingly difficult for CLTV to hold on to its audience” with news available around the clock on many different platforms. It began broadcasting in 1993.

### What is TLTV mortgage?

https://mymortgageinsider.com/how-your-refinance-depends-on-htltv/

Your TLTV, also know as combined loan-to-value or CLTV, adds your first mortgage and second mortgage LTVs together. Using the same example as before, a second mortgage worth \$15, 000 with an LTV of 80 would raise your TLTV to 95. However, your second mortgage could be a line of credit, commonly knownas a HELOC.

### What is a non QM mortgage loan?

https://thetexasmortgagepros.com/loan-options/non-qualified-mortgage-loans/

A Non-Qualified Mortgage mortgage is any home loan that doesn't comply with the Consumer Financial Protection Bureau's (CFPB) existing rules on Qualified Mortgage. The CFPB defined Qualified Mortgage Rule and designed to create safe loans by prohibiting or limiting certain high-risk products and features.