Do You Qualify for a Home Equity Loan? : Loan to Value

Do You Qualify for a Home Equity Loan?
By : Carrie Reeder

Loan-to-Value

The loan-to-value ratio is the amount you owe on your house versus the amount your house is worth. For example, if your house is worth $100,000 and you still owe $70,000, your loan-to-value ratio is 70 percent.

When you get a home equity loan, the value of your home is re-assessed. The lender will add your current mortgage balance to the requested home equity loan amount, and divide the sum by your home’s current value.
The final amount is the new loan-to-value ratio. Many lenders want to keep this amount below 80 percent.

However, some lenders are willing to loan you 100 percent of your home’s value or more. Here is a list of recommended Home Equity Lenders online.

It's important to use a reputable lender online to make sure your personal information is secure.

ABC Loan Guide can help you find a company that provides a Free Credit Report and Score Online as well as a No Equity Home Equity Loan.

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