Washington First Mortgage Loan Corporation
4055 Lake Washington Blvd. Suite 100
Kirkland, Wa. 98033
NMLS# CL-854647
P: 1-425-803-9061
F: 1-425-968-9464
 

 



Washington First Mortgage Loan Corporation
4055 Lake Washington Blvd. Suite 100
Kirkland, Wa. 98033
NMLS# CL-854647
P: 1-425-803-9061
F: 1-425-968-9464
 


Friday, September 21, 2018
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Commercial LTV Ratio

The loan-to-value ratio (LTV) is calculated by dividing the total amount of all mortgages, proposed and/or existing, on the property by the fair market value of the property, usually as established by an appraisal. Typically in real estate lending the practice is to use the lesser of the purchase price or the appraised value to determine the LTV. The commercial lender may use additional factors in determining the “fair market value” of the property based on its own experience and knowledge of the marketplace. Be sure to discuss this matter with the commercial lender of your choice.