Financial ratios

Loan-to-value ratio

The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. In Real estate, the term is commonly used by banks and building societies to represent the ratio of the first mortgage line as a percentage of the total appraised value of real property. For instance, if someone borrows $130,000 to purchase a house worth $150,000, the LTV ratio is $130,000 to 150,000 or $130,000/$150,000, or 87%. The remaining 13% represent the lender's haircut, adding up to 100% and being covered from the borrower's equity. The higher the LTV ratio, the riskier the loan is for a lender. The valuation of a property is typically determined by an appraiser, but a better measure is an arms-length transaction between a willing buyer and a willing seller. Typically, banks will utilize the lesser of the appraised value and purchase price if the purchase is "recent" (within 1–2 years). (Wikipedia).

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This video explains how to determine the maximum loan for a given monthly loan payment. http://mathispower4u.com

From playlist Finance: Annuities and Loans

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Determine a Max Car Loan Given a Monthly Payment (Formula)

This video explains how to determine the maximum loan for a given monthly loan payment. http://mathispower4u.com

From playlist Finance: Annuities and Loans

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Determine a Loan Amount Given a Down Payment of a Certain Percent

This video explains how to determine a maximum loan amount based upon the down payment being a percent of the total amount. http://mathispower4u.com

From playlist Finance: Annuities and Loans

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Ratios

This video defines a ratio and provides several examples on how to write a ratio and shows how to simplify a ratio. http://mathispower4u.wordpress.com/

From playlist Ratios and Rates

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Long Term Debt to Equity Ratio, ROE, & Shareholder's Equity

This finance video tutorial explains how to calculate the long term debt to equity ratio (LT Debt/Eq) and the total debt to equity ratio (Debt/Eq) using a company's shareholder equity and the ROE or return on equity. My Website: https://www.video-tutor.net Patreon Donations: https://www

From playlist Stocks and Bonds

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How To Calculate Your Mortgage Payment

This finance video tutorial explains how to calculate your monthly mortgage payment using the amortization formula. All you need is the principal loan balance, the loan term, and the fixed annual interest rate.

From playlist Personal Finance

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From playlist BUSINESS MATH 2 FINANCE MATH

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Business Math - Finance Math (22 of 30) Amortization - The Effect of Interest Rates on Prices

Visit http://ilectureonline.com for more math and science lectures! In this video I will explain the effect of interest rate on the price of purchasing a home. Next video in this series can be seen at: http://youtu.be/moEZfOVpEog

From playlist BUSINESS MATH 2 FINANCE MATH

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From playlist Balance Sheet

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From playlist Financial sector | AP Macroeconomics | Khan Academy

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Banking 8: Reserve Ratios

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From playlist Banking and Money

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From playlist Stavros Niarchos Annual Lecture

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From playlist Banking and Money

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From playlist Performance measures

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How To Calculate The True Cost of a Mortgage Loan

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From playlist Personal Finance

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Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-financial-sector/banking-and-the-expansion-of-the-money-supply-ap/v/bank-balance-sheets-in-a-fractional-reserve-system Thi

From playlist Financial sector | AP Macroeconomics | Khan Academy

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Mortgage Interest Rates

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From playlist Finance

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Underwriting | Ratio | Percentage | Risk | Debt-to-income ratio | Proportionality (mathematics)