CLTV and LTV

Hello. What is the difference between Combined Loan to Value and Loan to Value?
Thanks! :wink:

;D
You kind of answered that one huh?

Example:
You only have 1 loan on your property that is valued at 100K and the loan amount is 80K. Your LTV is 80%.

Lets say that you have two loans on your property that is valued at 100K and the loan amounts are 80K and 20K. Your CLTV is 100%.

To add on to what the first reply was.
The example given shows a 100% financed loan, excluding closing costs. If the ltv was 80% (1st loan) and 15% (2nd) loan, this means that the bank will allow financing for about 95% of the purchase or appraised price, depends if it is a purchase or refinance.
This example leaves 5% of the loan to be paid by the borrower or an outside funding source. Oh, and don’t forget closing costs.
The reason I used the word “allow” is that some banks want to see the borrower put something into the transaction and won’t allow a third party to fund the remaining 5%.
example:
purchase price 100,000 with 100% CLTV
1st mortgage 80% or 80,000
2nd mortgage 20% or 20,000
total loan 100,000 or 100%CLTV ( combined loan to value)
example 2:
purchase price 100,000 with 95% CLTV
1st mortgage 80% or 80,000
2nd mortgage 15% or 15,000
total loan 95,000 or 95%CLTV
still needs 5% or 5,000 to close plus closing costs.

hopes this helps, not to beat a dead horse " like grandma used to say"

Jaz

Hey guys.
Yeah that’s what I thought it was after giving it more thought. But thanks for the clarification. :wink: