FAQ
LTV (Loan-to-Value Ratio) Explained: How It Affects Your Mortgage
Loan-to-Value ratio (LTV) is the percentage of the property's value that is financed. A $400,000 purchase with 10% down has a $360,000 loan and 90% LTV.
Details
The Full Answer
- LTV = Loan Amount ÷ Property Value (or purchase price, whichever is lower)
- Higher LTV = higher risk to lender = PMI, higher rates, and more restrictions
- 80% LTV is the standard threshold for no PMI on conventional
- Common LTV limits: primary res 97%, second home 90%, investment 85%
- Jumbo loans: often 80% maximum
CTC's Role
How CTC Processing Handles This
CTC Processing tracks LTV on every file and identifies PMI requirements, LTV-based restrictions, and program eligibility at intake. LTV affects program availability, PMI, and rate pricing.
Have more questions?
CTC Processing works with Colorado loan officers. Call 970-222-2615 or email ctcprocessingllc@gmail.com.
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