What are LTV and CLTV?
The LTV stands for loan to value ratio, and it’s a method used for assessing the risk involved with a mortgage before its approval. It’s a common ratio used by lenders and financial institutes to figure out whether the risk involved with a mortgage is high or low. LTV plays a crucial role as it helps the lenders decide the interest rate that should be charged to the applicant.
CLTV or combined loan to value ratio also has the same function, but it’s used when an applicant has already taken more than one loan. CLTV is a crucial aspect for the lenders as it helps them calculate the capability of a mortgagor to afford another property. CLTV and LTV are quite similar, but the only difference is that CLTV accounts for all mortgages during its calculation.
About Our LTV Calculator - Online Tool
Our LTV calculator has been developed to make the process of calculating loan to value ratio easier for everyone dealing with mortgages. Whether you’re a mortgagor or a mortgagee, this utility can help you figure out the exact Ltv ratio for any given amount. The loan to value calculator on SmallSEOTools is a web-based service that doesn’t need to be downloaded on your device. It’s an online tool that doesn’t require any plugins installed for the calculation of loan to value ratio.
Whether you want to calculate LTV one time or you want to do it multiple times, our LTV calculator will not impose restrictions on its usage. It's a free of cost tool with top-notch features which make the process of LTV calculation a piece of cake for everyone. Anyone with a device connected to an internet connection can access our loan value calculator. You don’t need to get a specific device for using this online utility. You can get accurate results with this LTV calculation service from all kinds of devices, as it is compatible with all operating systems, including iOS, Android, Windows, Mac, and Linux.
How To Calculate LTV?
The manual calculation of a loan to value ratio is an intricate process as you’ll need to memorize the LTV formula. You will need a calculator after putting the values in the LTV formula to get your hands on the LTV ratio. The formula for LTV is given below.
LTV = Mortgage Amount/Appraised Property Value
How to Use Our Loan to Value Calculator?
The loan to value calculator on SmallSEOTools is easy to use as it comes with a user-friendly interface. You don’t have to follow intricate procedures for calculating LTV anymore, as our LTV calculator eliminates all hurdles the users could face on other online platforms. You don’t need to get registered for accessing this LTV calculation utility or follow any hard and fast rules for using it. All you need to do for calculating LTV is access this tool through any web browser and follow the simple steps given below.
Firstly, enter the mortgage amount and appraised property value in the boxes given on this tool.
The next step is to click on the Calculate LTV button.
The LTV calculator will work on your provided values and display the accurate LTV ratio in a matter of seconds.
