Loan-to-Value Ratio—better known as LTV—is one of those real estate terms that sounds complicated until someone explains it in plain English. That’s exactly what we’re doing in today’s Two-Minute Tuesday! Whether you’re buying your first home or you’ve been casually researching the process, understanding LTV is a key part of knowing how lenders evaluate risk, how your down payment impacts your mortgage, and what kind of loan options you may qualify for.
In this episode, I walk you through what LTV actually means, how it’s calculated, and why it matters more than most buyers realize. You’ll hear simple, real-world examples that make the concept immediately clear—no jargon, no confusion. You’ll learn how a small change in your down payment can significantly affect your LTV, how lenders use this number when determining your interest rate, and how LTV can influence whether you’ll need mortgage insurance.
My goal with this series is to help you understand the “why” behind the real estate process so you can make confident, informed decisions. If you’ve ever wondered how banks view your loan, what makes a borrower “low risk,” or what you can do to strengthen your position as a buyer, this video is a great place to start.
If you find this helpful, like the video, drop your questions in the comments, and hit subscribe so you never miss the next Two-Minute Tuesday. Your homebuying journey gets a whole lot easier when you know how the numbers work—let’s break it down together!
Timestamps :
0:00 – LTV: Why It Matters
1:18 – Down Payment Example
1:40 – Lower LTV Benefits
2:00 – Appraisal vs. Price
2:20 – When LTV Increases
2:39 – Why Buyers Should Care
3:03 – Do You Need 20% Down?
3:18 – Get Expert LTV Guidance
3:45 – Advice
#LoanToValue #mortgagebasics #homebuyingadvice #realestateeducation #firsttimehomebuyer
Alex Schult CA DRE License # 02236174 KW Spectrum Properties
📲 Text: 949-726-2601
📧 Email: aschult@kw.com
Don’t forget to like, subscribe, and hit the bell so you never miss the next Two-Minute Tuesday!
What is DOM, and Why is It Important? : https://youtu.be/tFLC3iR0WCs
FHA vs Conventional Loans : https://youtu.be/0V5G-z5hMoc
DISCLAIMER:
This video content is intended for informational, educational, and entertainment purposes only. Neither Living in California nor Alex Schult is a registered financial advisor, attorney, or tax professional. While we have taken reasonable steps to ensure the accuracy of the information presented in this video, we cannot guarantee that it is free from errors or omissions. Any reliance you place on the information provided is strictly at your own risk. Additionally, your use of the Living in California YouTube channel and any communication through this platform, including but not limited to YouTube comments, emails, or messages, does not establish a formal business relationship with Alex Schult or Living in California. For specific advice related to your real estate, financial, or legal needs, we recommend consulting with a licensed professional in the relevant field.
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