[Brentwood, 03/22/2018] – The Mortgage Investors Group Brentwood (MIG) commits to helping Tennesseans achieve their homeownership dreams. In line with this goal, the Tennessee Housing Development Agency’s (THDA) top lender discusses the importance of the loan-to-ratio value, its risk-assessment tool.

The company says that a higher loan-to-value (LTV) will cause a riskier loan and mean a higher cost for the borrower.

Why the LTV Matters

The Mortgage Investors Group Brentwood explains that the LTV allows a comparison of the loan value to the property value. The company determines the LTV by dividing the amount of the loan with the purchase price or the value of the home, or whatever is lower.

The client’s down payment will affect the LTV and MIG’s decision to approve the mortgage.

The company adds that a down payment well below 20 percent would pull up the LTV to more than 80 percent. In this instance, MIG would then require private mortgage insurance (PMI) for clients who are not using a government-insured loan. The PMI would mean more in terms of monthly payments, with the additional cost running from 0.22 to 1 percent every year.

The importance of the LTV also extends to when clients refinance.

The Value of a Large Down Payment

MIG states that a high LTV is typically for creditworthy borrowers, adding that it tends to consider applications with low LTVs more favorably.

The Tennessee-based THDA top lender suggests that applicants may want to aim for a significant down payment because the move provides automatic equity in the home and encourages meeting monthly payments.

The company remarks, “We take pride in getting our customers into their dream homes, and we have a reputation for delivering service that is personalized and aimed at helping our borrowers find the best solutions for their home financing needs, when they need it most.”

MIG also considers the client’s credit, income, employment history, down payment and debt-to-income ratio together with the LTV, when evaluating the application.

About Mortgage Investors Group Brentwood

Mortgage Investors Group Brentwood is a Tennessee-based firm that helps clients fulfill their dreams of homeownership. The company, which has been Tennessee Housing Development Agency’s top lender since 2003, is the largest independent provider of single-family residential mortgages in the state. It has 25 branches, from Memphis to the Tri-Cities.

For further information, visit https://migonline.com/ website today.