#1
June 2nd, 2016, 11:06 AM
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Bank of America LTV Ratio
What is way to reduce loan-to-value (LTV) ratio according to Bank of America for its home loan schemes , can you plz tell me as I am thinking to take home loan from there ??
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#2
June 2nd, 2016, 11:24 AM
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Re: Bank of America LTV Ratio
As you asking I am telling according to Bank of America for its home loan schemes One of the best ways to help reduce your loan-to-value ratio is to pay down your home loan’s Glossary Term: principal layer on a regular basis. It happens over time simply by making your Glossary Term: monthly payments layer, assuming that they are amortized (that is, based on a payment schedule by which you’d repay your loan in full by the end of the Glossary Term: loan term layer). Loan taker can reduce their loan principal faster by paying a little bit more than their amortized mortgage payment each month (ask your lender if you will have to pay Glossary Term: prepayment penalties layer if you do this). The underwriter carefully looks at the home value (based on a professional appraisal ordered by your lender) of the property you are purchasing to verify that it meets or exceeds the purchase price. This will also help them ensure the loan-to-value (LTV) ratio fits within the loan program guidelines. (For more complete information, read The home appraisal process.) To qualify for a conventional loan, most lenders require you to have a loan-to-value ratio of no more than 80-95%. The higher your home's value and the less you owe on it, the lower your LTV ratio. |
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