Examples of Effective LTV in a sentence
After giving effect to the proposed Transaction, the Repurchase Effective LTV of the High LTV Agency/Prime Jumbo Loans subject to the Transactions hereunder shall not exceed the Purchase Effective LTV of the High LTV Agency/Prime Jumbo Loans by more than the Facility LTV Trigger.
Effective LTV Example Standard LoanPledged Asset LoanPurchase Price:$300,000$300,000“Normal” Down Payment @ 20%:$60,000-Loan Amount$240,000$300,000Pledged Assets-$60,000LTV80%100%Effective LTV80%80%Initial Balance of Pledge Account Due to Overcollateralization $78,000 Finally, footnote 145 of the Proposed Rules acknowledges the fact that many credit worthy homebuyers seeking to purchase a home will likely not have the 20 percent down payment required for a QRM.
While the Actual LTV is often at or near 100%, the Effective LTV is generally 80% or, more often, lower.
The borrowers who tend to have enough net worth in the form of securities or bonds to pledge the necessary amount for the required equity in the home purchase or refinance tend to be high net worth individuals and, as a result, have a significantly better credit performance history than borrowers with an actual LTV comparable to the Pledged Asset Loan‟s Effective LTV.