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How to Keep your Budget Sustainable by Lowering the Mortgage

A substantial percentage of our income goes to cover the cost of housing. You need to keep this figure minimal if you are to be left with some change for other things in your life. You can do so by establishing a better deal on your mortgage. This is done when you lower your loan to value ratio. Here is more info on the idea, and the ways to make it a reality.
A loan to value ratio shall be what the bank focuses on to see the relationship between the money you wish to access, and the value of the property you will invest it in. This shall be a percentage that tells them what amount of risk level they are getting themselves into. High percentage indicates a bigger risk on their part lending you. It is a straight forward high risk in cases where the property holds only a small amount as equity. Even if they were to take the property to settle the loan amount, it would not fetch the amount they gave you. Where the percentage is low, you shall give favorable interest rates.
To get the loan to value ratio, you shall divide the mortgage amount by the sale price of the house. The resultant figure is normally less than zero. The two numbers to the right of the decimal point shall then serve as the percentage. You can also arrive at a much simpler answer by using the LVR calculator, which keeps things simple. You can check it out on this site.
It is best if you can manage to keep the loan to value ratio lower than 80%. This shall have most lenders viewing you as someone with a low risk to give money to. When you have a lowered percentage, you will manage to get lower monthly payments. These low figures shall leave enough space for you to find some money to spare for other things in your life. There are several ways you shall manage such a feat. You shall first have to get a larger down payment. The other thing to do would be to try and bring down the selling price of the house as much as you can. If you can get the price lowered, the ratio percentage shall automatically go down, when the calculation is done.
You need to know what happens when the loan o value ratio is worked out, and how to influence those calculations. A lowered interest rate on the mortgage is welcome news in any budget. You shall find these and other helpful financial tips on this blog. You will thus discover more ways to keep the costs low, and thus to have more money open for spending.