What is LTV in mortgage lending? How important are debt-to-income ratios? Understand the two most important metrics that can make or break your loan approval.
At CLG, we believe that knowing how LTV and DTI ratios work puts power in your hands. Our goal is to demystify the mortgage process so you can confidently guide your clients and your future.
Loan-to-Value (LTV) in mortgage lending measures the size of your loan compared to the appraised value of the property. Debt-to-Income (DTI) measures how much of your monthly income goes toward debts. These two ratios shape how lenders assess risk and determine what loan programs you qualify for.
Most conventional loans require an LTV of 80% or less to avoid mortgage insurance. A bigger down payment can give you better rates and lower fees.
Lenders typically prefer a DTI ratio below 43%. Paying down revolving debt or avoiding new loans before applying can improve your approval odds.
At California Lending Group, we believe in equipping you with the knowledge and tools to make confident decisions. equipping you with the knowledge and tools to make confident decisions. That’s why we break down complex terms like LTV in mortgage lending and DTI into actionable insights that work in the real world — not just on paper.
Most buyers wait until they apply to check their LTV and DTI. Smart agents get ahead of the curve. Use our calculator or speak with a CLG advisor to assess where you stand.
Need help evaluating your ratios or want to know how lenders really interpret them? Let’s talk. Our job is to simplify the process, not sell you a product.
We believe you deserve full transparency about what you’re paying for — and why.
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