Calculation: LTV Ratio = Mortgage Amount / Appraised Property Value
Ideal ratio: typically, 80% or lower LTV ratios will help you to obtain the most favorable / lowest rates
What is the Definition & Importance of ´Loan to Value Ratio´:
When investing it is obviously favourable to accrue as little additional cost as possible while minimizing the amount of down payment on your loan to ensure you have plenty of cash on hand to manage your business and investments.
This metric helps to calculate exactly that. Ideally, our hotel management company suggests you put down as little as possible at the best interest rate possible. Typically, the best rates can be secured at an LTV ratio of 80% or lower.
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