loan-to-value
Debt coverage percentage
Loan-to-value is a ratio comparing a loan amount to the appraised value of the asset securing it, expressed as a percentage.
A home worth $200,000 with a $160,000 mortgage has an 80% loan-to-value.
Lenders use this ratio to assess risk—higher ratios mean more exposure if borrowers default.
They required private mortgage insurance because the loan-to-value exceeded 80%.
Initial sum toward purchase
- home equityOwnership portion of residence
- refinancingReplacing a loan
- underwritingRisk evaluation and acceptance
- collateralSecurity for debt
property appraisal · principal · amortization · borrower · lender · closing costs · mortgage insurance · PMI
Ability to repay debts
- overleveragingExcessive debt accumulation
- negative equityOwing more than owned
- underwater mortgageLoan exceeding property value
- foreclosureLender seizes mortgaged property
delinquency · credit score · risk assessment · exposure · stress testing · subprime · write-off · non-performing
Swiss Rhine city
- capital requirementsMinimum funds banks must hold
- financial stabilitySound economic standing
- reserve bankNation's monetary authority
- complianceAdhering to requirements
countercyclical · housing policy · affordability · cap · ceiling · guideline
down payment
Initial sum toward purchase
- home equityOwnership portion of residence
- refinancingReplacing a loan
- underwritingRisk evaluation and acceptance
collateral · property appraisal · principal · amortization · borrower · lender · closing costs · mortgage insurance · PMI · qualification
creditworthiness
Ability to repay debts
- overleveragingExcessive debt accumulation
- negative equityOwing more than owned
- underwater mortgageLoan exceeding property value
foreclosure · delinquency · credit score · risk assessment · exposure · stress testing · subprime · write-off · non-performing · arrears
Basel
Swiss Rhine city
- capital requirementsMinimum funds banks must hold
- financial stabilitySound economic standing
- reserve bankNation's monetary authority
compliance · countercyclical · housing policy · affordability · cap · ceiling · guideline
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance
- mortgage loanslender, borrower, mortgage broker, underwriting, underwriter
- mortgage termsmortgages, foreclosure, lien, interest rates, fixed rate
- pawnshopspawn shop, pawnshop, pawnbroker, pawn, pawning
- maritime financesale-leaseback, bareboat charter, offshore finance
- auto loansmonthly payment, down payment, interest rate, APR, refinance