The Loan-to-Value (LTV) ratio is a financial metric used by lenders to assess the risk associated with a mortgage loan. It's calculated by dividing the loan amount by the appraised value (or purchase price, whichever is lower) of the property. A lower LTV ratio generally indicates a lower risk for the lender, as the borrower has more equity in the property. This can often lead to more favorable loan terms, such as lower interest rates or reduced private mortgage insurance (PMI) requirements.
function calculateLTV() {
var loanAmountInput = document.getElementById("loanAmount");
var propertyValueInput = document.getElementById("propertyValue");
var ltvResultDiv = document.getElementById("ltvResult");
var loanAmount = parseFloat(loanAmountInput.value);
var propertyValue = parseFloat(propertyValueInput.value);
if (isNaN(loanAmount) || isNaN(propertyValue) || propertyValue 100) {
ltvResultDiv.textContent = "LTV Ratio: " + ltvRatio.toFixed(2) + "% (Loan amount exceeds property value. This is typically not possible for a standard mortgage.)";
} else {
ltvResultDiv.textContent = "LTV Ratio: " + ltvRatio.toFixed(2) + "%";
}
}