The loan to value ratio is the amount of the mortgage compared with the value of the property.

It is shown as a percentage.

If you get an $80,000 mortgage to buy a $100,000 home, the the loan-to-value is 80% because you got a loan for 80% of the homes’ value. If you are a lender, a mortgage with a high loan-to-value ratio is more risky. Most mortgages with loan to value ratios above 80% require mortgage insurance, which we call PMI (Private Mortgage Insurance).  This would be a higher risk and the lenders need to feel confident in who they choose to loan money to. There is so much more to the lending business, of which I am not an expert, but have worked with many over the last 25 years. There are some loan to value curators that you can find online that will give you a visual to help this all make sense when you crunch the numbers for your purchase and try to plan your costs for your mountain property. Knowledge is power I always say. You can find these online as many lenders want your business of course. Free to look at least, right?

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Here is one example of a loan-to-value calculator: https://www.bankrate.com/calculators/mortgages/ltv-loan-to-value-ratio-calculator.aspx  

The global COVID-19 pandemic has affected many aspects of our daily lives: how and where we work, where we live, and how we shop. Fundamental shifts in these behaviors will have major implications for the real estate market. So what could be the lasting effects on real estate assets as the pandemic recedes? It’s good to crunch the numbers to keep surprises at a minimum. And maximize what you can afford.  Check out these local statistics.

Nobody likes last-minute surprises…so it’s essential to plan ahead for the out-of-pocket costs you’ll have with your mortgage. Of course, you’ll have a down payment, but there are other costs to budget for. Here are some of the most common ones, but we be sure to talk with your loan officer about the closing costs to expect based on your unique circumstances.

For one, when you find the right place, your agent may tell you to write a check for an earnest money deposit to let the seller know that you’re serious and boost the odds of them picking your offer over others.

You’ll also get an appraisal and home inspection, typically $300 to $600, but prices range based on the average rate in your local area and if the property is complex—very complex properties will have greater out-of-pocket costs than the average. And you may or may not need an inspection depending on your circumstances.

The phrase “closing costs” refers to all the fees and expenses associated with closing a real estate transaction. They vary significantly, as they are typically split and portions covered by both the buyer and seller in the transaction. It’s also not uncommon for sellers to agree to pay some or all of the buyer’s closing costs. As to what you can expect for closing costs, buyer’s closing costs generally pay about 2% – 5% of the home’s price in closing costs.