What does Loan-to-value (LTV) ratio mean?
To calculate this ratio, you need to compare the amount you want to take out compared to the apprasial value of your home.
ex.) If you buy a house that appraises for £150,000 and put down £15,000 (10% of the appraised price) you will then need to borrow £135,000 from the bank. The loan-to-value ratio will then be 90%. The higher the LTV ratio, the greater the risk because defaults are more likely. LTV decreases as you put more down.
What is the purpose of this type of refinancing?
These types of loans are designed to provide borrowers with the opportunity to make large purchases on home improvements or consolidate all their debt into one easy payment while saving on interest.
What is a Lien?
If a borrower fails to meet the obligations of a loan or contract, a lien gives the creditor the right to seize and sell the collateral property or asset. If a lien exists on the property, it cannot be sold by the owner without the lien holder's consent.
What type of housing qualifies for this type of refinancing?
Primary residents of London and parts of Ohio including Cuyahoga, Lake, Lucas, Sandusky, Summit, and Wood counties are eligible. Some vacation homes, including single-family houses and condominiums, also qualify.