smart lending guides for decision making

Comprehensive Lending Guide Bookmark Site

For the Banker Line of Credit

loan-to-value calculation (LTV)
Enter the estimated market value of your home: (see home values report) $
Enter the amount you still owe on your home plus 2nd or 3rd mortgages, if any: $
Percentage LTV
Your Percentage of Market Value Total Amount That You Can Borrow
70% LTV $ $
80% LTV $ $
90% LTV $ $
100% LTV $ $


For the BLOC

Your BLOC must have a credit line of at least $20,000 for the Banker Line of Credit program to work. If you are paying off debts with your BLOC, borrow at the right percentage LTV to payoff your debts and leave open at least $20,000 on your credit line.

LTV stands for: Loan-to-Value

Banks and other lenders will extend you credit based upon a percentage of the estimated market value of your home.

That percentage of market value minus the amount you owe on your first mortgage (plus any 2nd or 3rd mortgages that you may have) becomes the maximum amount of credit that lenders will give you.

For example:

Let's say that your home has an estimated market value of $150,000. The amount that you still owe on your first mortgage and any other liens is $100,000. The maximum amount you can borrow is calculated as follows:

 Estimated Market Value:  $150,000  $150,000
Percentage LTV:  80%  100%
Percentage of Market Value:  $120,000  $150,000
 Less Mortgage Debt:  $100,000  $100,000
 Equals Total Equity:  $20,000  $50,000


* Calculations are based upon the assumptions you entered. Please note that rounding errors can make a small difference in calculations. Your actual mortgage lending rate may vary depending on your credit quality and lender. The circumstances surrounding your credit and loan qualifications may result in different calculations.

Home Equity Application

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