The dream of owning a property is often tempered by the realities of financial planning and the uncertainties that come with a major investment. Achieving the dream of property ownership is well within reach if you thoughtfully assess your financial situation and explore your options. That's where a loan-to-value (LTV) calculator comes in, offering a practical way to assess your financial situation and make informed choices on your path to property ownership.
See firsthand how our LTV calculator can be your trusted companion in planning for any major purchase that involves a secured loan, from your dream property to other significant investments.
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Think of the LTV ratio as a measure of how much of the property you 'own' versus how much the bank 'owns' through your loan. A lower LTV means you have more equity in the property, while a higher LTV means the bank has a larger stake.
Formula - LTV Ratio = (Loan Amount) / (Property Value) * 100
Example - LTV Ratio = (₹80 lakhs) / (₹1 crore) * 100 = 80%
While you could crunch the numbers manually, an LTV calculator offers a more efficient and accurate alternative. By eliminating the risk of human error, our LTV calculator streamlines the process, making your financial journey smoother. Read on to discover the numerous benefits of using this powerful tool.
Our LTV calculator is remarkably simple to use, and its impact on your financial decisions can be profound. Discover the many ways this intuitive tool can empower you to make informed choices about your loan and property.
Here are the reasons why you should use our calculator:
When you receive the results from our Loan-to-Value calculator, understanding them is crucial for making informed financial decisions. The displayed LTV ratio is usually represented as a percentage. It reflects the relationship between the loan amount and the appraised value of the asset, typically a home.
For instance,
With an LTV of 80%, you're essentially financing 80% of the property's price through a loan and contributing the remaining 20% from your own funds. Understanding this ratio is crucial as it directly influences the types of loans you can access and their terms. This percentage from the LTV calculator holds significant implications for your borrowing options.
You may consider an LTV calculator to be like a risk-weighing scale for lenders. Your LTV ratio acts as a balancing scale, determining the level of risk you present to lenders. A lower LTV indicates you're borrowing less compared to the property's value, making you a less risky borrower. This can translate to more favourable loan terms, including lower interest rates and potentially fewer fees.
Conversely, a higher LTV means you're borrowing a larger amount relative to the property's worth, increasing the lender's risk. This can lead to stricter loan terms and potentially higher interest rates. Understanding your LTV ratio is crucial in handling these dynamics and securing the best possible loan terms for your situation.
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