LTV Rate Correlation

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How much should you borrow? Does borrowing too much change my rates? The short answer is as much as you feel comfortable borrowing and yes, loan amounts change your rates. The LTV or Loan to Value is the ratio of the amount of money you are borrowing in accordance to the appraised value of your home. For example, a $100,000.00 loan on a home with an appraised value of $500,000.00 would have an LTV of 20%. Ideally you want to keep your LTV under 60% to get the best rates, but you can go all the way up to 105% for some programs! The higher the LTV, the more risk is involved for the investor, therefore the rates up to offset these risks.

California Mortgage Rates


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