How is Loan-to-Value (LTV) calculated?
New Day uses the LTV ratio to assess lending risk. High LTV ratios are a higher-risk loans.
Lower LTVs are better.
LTV is calculated by dividing the loan amount
by the value of the property.
If a property is valued at $100k, with a $10k down,
the loan is for $90k.
This results in an LTV ratio of $90k/$100k or 90%.