combined loan to value ratio


CLTV Ratio. A ratio that indicates the risk of a homeowner going into default if a home purchase is funded by multiple mortgages. It is calculated by dividing the total value of the combined mortgages by the value of the property. High values (75-85%) are usually required by creditors before they extend a second mortgage or refinancing option to a homeowner, although lower values indicate that there is less risk of default (the loan value is a smaller percentage of the overall home value).

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You should try and figure out the best combined loan to value ratio you can so that you can get the most from it.

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The combined loan to value ratio was an important thing to be aware of because home owning was a serious business.

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After the owner had asked to take out a second mortgage, the creditors set about evaluating the risk of default by finding the combined loan to value ratio.

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