Combined-Loan-to-Value (CLTV) vs Loan-to-Value (LTV) Ratio
CLTV and LTV are both similar figures describing how much equity one has in their home versus how much is still owed on the mortgage. LTV only takes into account the first mortgage, while CLTV factors in the first mortgage and any subsequent home loans as well.
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What Is a Debt-To-Income (DTI) Ratio & How Is It Calculated
Before a lender approves any mortgage application, the underwriting department verifies one's ability to repay the loan first. The mortgage isn't the only payment that a borrower will have - there are car loans, student loans, personal loans, credit ...
Can The HELOC Loan To Value Be Changed Later
For most lenders, this is a 'yes' but any increase/decrease in the credit limit will require a new application to be completed.
How Do Deferred Student Loans Affect One's DTI (Debt To Income) Ratio
Only when a loan is reporting as a $0 payment to the credit bureaus will it not affect a debt-to-income ratio. If it is reporting as deferred then a percentage of the balance (i.e. 0.5% or 1%) is used to determine the monthly minimum payment. If a ...
What Is A Front-End Ratio / Housing Ratio
A front-end ratio or housing ratio divides one's total monthly mortgage payment, also known as a PITI (Principal, Interest, Taxes and Insurance), by one's monthly income. For example a monthly mortgage payment of $1,000 with a gross monthly income of ...
Can Mortgages Come Off One’s DTI (Debt To Income) Ratio
No. PITI (Principal, Interest, Taxes, Insurance) is the sum components of a mortgage payment. This calculation is used in conjunction with a 15-year to 30-year stress test to obtain a DTI Ratio.