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A loan to value (LTV) ratio describes the size of a loan you take out compared to the value of the property securing the loan. Lenders and others use LTV’s to determine how risky a loan is. A higher LTV ratio suggests more risk because the assets behind the loan are less likely to pay off the loan as the LTV ratio increases.
Car Loan Calculator – Loan Payment Estimator – While this auto loan calculator should be highly accurate and give you a solid idea about the costs of a proposed car loan, it is not professional advise and should not be relied upon when making your final purchasing decision. Always talk to a professional directly and fully understand what you are getting into before signing a loan contract.
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The loan-to-value ratio determines the size of the loan based on a property’s as-is value or appraised value. Learn more about LTV and how to calculate it. When readers buy products and services discussed on our site, we often earn affiliate commissions that support our work.
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Loan to Value Ratio | Car Loans | Innovative Funding Services – EXAMPLE: Loan to Value of a Car Loan. If you decide to go with this lender, you will have to make a down payment. You can bring your LTV down to a 110% LTV buy making a down payment of $1,000 because a loan of $16,500 [$16,500 = $17,500 – $1,000] with a car worth $15,000 will result in an LTV of 110% [110% = $16,500/$15,000].