Question:
How do I get the best loan terms?
Loan to Value Ratio
When you are out searching for your dream home, it is important to know just how much house you can afford. Financial institutions that offer home loans will pre-qualify you to make sure you are considering houses that you realistically stand a chance of winning loan approval for. One of the things lenders consider is the loan to value ratio, or LTV. The LTV ratio is the amount of money a home buyer borrows to purchase a home versus the appraised value of the home. The higher the LTV ratio, the less money a home buyer has to put down on the property. For example, a home buyer would need to make a down payment of $10,000 on a $100,000 home at 90% LTV. Higher LTV ratios mean the lender is taking on more risk by lending the money to the buyer. Lenders almost universally require mortgage insurance on loans with LTVs above 80%. If you are paying mortgage insurance, keep in mind as soon as you build at least 20% equity (either through the miracle of appreciation or by actually paying the loan down), you are eligible to stop paying mortgage insurance. For more information on mortgage insurance and LTVs, visit Bankrate.com. The site offers a wealth of information on mortgages, including a variety of mortgage calculators.
Real Estate Frequently Asked Questions
Where can I find real estate listings?
How do I find information on properties outside my local area?
How do I know if I'm ready to buy a home?
What should I look for in a neighborhood?
What are the financial benefits of owning a home?
What is the difference between market value and appraised value?
Should I sell my existing home before looking for a new one?
Should I take a first time home buyer program?
What do new home buyers need to know?
What online resources are available to first time home buyers?
What books are available for first time homebuyers?
What types of relocation services do real estate agents offer?
What special issues do I need to consider when relocating?
How do I learn about the area to which I'm relocating?
How do I find a relocation company?
How do I find a moving company?
What should I look for in a reputable moving company?
What types of things should be included in a moving quote?
Who provides the moving supplies?
Should I rent my own moving truck?
What is included in real estate closing costs?
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What closing information goes into the public record?
Who uses public records, and are they free?
How long will it be before we close on our new home?
What is included in the appraisal?
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What information do I need to give the appraiser?
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Can I get an appraisal online?
How do I know how much to offer?
Is the deal final once the offer is accepted?
How do I know what fixtures or decorations the seller is taking?
How do I find a commercial real estate lender?
How do I find a commercial real estate broker?
Where can I find commercial real estate listings?
What is the difference between residential and commercial real estate?
How can I get at the equity in my home?
Can I borrow against all my equity?
What can I use a home equity loan for?
How do I know how much equity I have in my home?
What is a first time home buyer program?
What do I look for in a home inspector?
What does an inspection consist of?
Why do I need a home inspection?
What do I get in the inspection report?
Who should get the home inspection?
What is a fixed-rate mortgage?
How long a mortgage should I get?
Can I pay off my mortgage faster?
What is an adjustable rate mortgage?
How do I get the best loan terms?
Should I get an interest only loan?
Who qualifies for no down payment or low down payment loans?
How much of a mortgage can I afford?
How much should I put down on my house?
Is real estate a good investment?
What about buying a vacation home?
Do I have to wait for a buyer's market?
How do I find a licensed real estate agent?
Should I work with a buyer's broker?
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How much will a broker charge?
Can I negotiate the realtor's fee?
What is the difference between a real estate agent and a real estate broker?
How do I get my real estate license?
What services do real estate agents provide?
Should a get a loan with no closing costs?
How long does it take to complete a real estate course?
How do I find a real estate school?
Can I study for the real estate licensing exam online?
What if I'm relocating for my job?
How do I find a first-time buyer's program and should I use it?
The home we are buying is in good condition. Do we still need an inspection?
Can the seller pay for the home inspection?
My new company is offering me a relocation package. What does that include?
How can I use the equity in my home?
How do we go about buying a home?
Should I invest in real estate?
How can I simplify packing and moving?
How do I go about the process of buying a new home?
| Guru Spotlight |
| Jolyn Wells-Moran |
