Bank of America LTV Refinance

Hi buddy here I am looking for info regarding to Bank of America LTV (loan-to-value) Refinance in home loan reference so would you plz tell me about the same ??

Bank of America is an American multinational banking and financial services corporation headquartered in Charlotte, North Carolina.

If you are considering refinancing your mortgage, the amount of available equity you have in your home plays an important role.

Your home equity is the difference between the appraised value of your home and your current mortgage balance(s). Your equity helps your lender determine your loan-to-value ratio (or LTV), which is one of the factors your lender will consider when deciding whether or not to approve your application.


Calculation of loan-to-value ratio
Your loan-to-value ratio is another way of expressing how much you still owe on your current mortgage.

Here is the basic loan-to-value ratio formula for a refinance:

Current Loan Balance ÷ Current Appraised Value

For example: You currently have a loan balance of $140,000 (you can find this number on your monthly loan statement or online account).

Your home currently appraises for $200,000. So your loan-to-value equation would look like this:

$140,000 ÷ $200,000 = .70

Convert .70 to a percentage, and that gives you a loan-to-value ratio of 70%.

If your lender’s guideline for an allowable refinance loan amount is 80%, then you would meet that requirement in this example.

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Answered By StudyChaCha Member