Posted by Stacy (AZ) on December 16, 1998 at 12:00:34:
A slight clarification:
“LTV is a calculation of all the loans on a property including your own money.”
This is true when analyzing a property you own or are going to purchase. However, from a note buyer’s perspective LTV is a little different. The LTV includes the note being purchased and all senior loans. For a 100K FMV house, with a 60K first, a 20K second (the one being bought), and a 15K third, the LTV is (60+20)/100 = 80%, disregarding the third.