CLTV<\/u><\/a>) is another important calculation.\u00a0<\/p>The CLTV ratio evaluates the value of the borrower’s home to the combined total of the loans secured by it, counting the loan or line of credit that they are looking at.<\/p>
A combined loan to value ratio (CLTV) = Current loan balance + HELOC \/ Current appraised value.<\/p>
Even though the CLTV ratio requirement may vary from lender to lender but most lenders require the CLTV ratio to be below 85 % to qualify for a home equity line of credit.\u00a0<\/p>
But the home\u2019s value can fluctuate over time so if the value drops, they may not be eligible for a home equity loan or line of credit, or they may end up unsettled more than what their home is worth.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t