5. Think and then make a much bigger deposit: In the event your LTV ratio is actually higher, you can even believe while making more substantial deposit in order to bring it down. Eg, whenever you are to get a property to have $250,000 and would like to stop PMI, you’ll need to make a down payment regarding $50,000 (otherwise 20% of your price).

Figuring LTV is an essential step up the borrowed funds techniques. By the wisdom their LTV ratio, you can make told decisions regarding the down-payment and you can home loan solutions. Consider, the lower your own LTV ratio, the lower their exposure while the a borrower, and so much more advantageous the mortgage terminology could be. (más…)