Investor Glossary-high-ratio mortgageInvestor Glossary-high-ratio mortgageInvestor Glossary-high-ratio mortgageInvestor Glossary-high-ratio mortgageInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

High-ratio Mortgage

The HTML to link to this page
 

A high-ratio mortgage is one with a high LTV, or loan-value ratio. Today, the high-ratio mortgage is defined as any mortgage for over 80% of the (appraised) value of the property. Historically, some lenders defined the high-ration mortgage limit more conservatively, at only 75%. Typically, the lender will require that any residential high-ratio mortgage be insured. An insured mortgage protects the lender from borrower default, and with a high-ratio mortgage this risk increases as the LTV increases. The high-ratio mortgage is not unusual, especially for first time buyers. As an alternative to the high-ratio mortgage, many buyers opt to obtain a first mortgage that is not a high-ratio mortgage, and augment that with a small junior mortgage. Not only mortgage insurance premiums but also higher interest rates tend to make the high-ratio mortgage slightly more expensive.



Rate this high-ratio mortgage definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, labor relations, APR, in escrow, liquidity ratio, retained earnings, cancelled check, required rate of return, quality assurance, annual return, stock market close, VIX, ex-dividend date, FICO score, implied volatility, limit order, stock split, 1031 exchange, wholly-owned subsidiary, EBITDA, option premium, real GDP, ex-dividend, reverse mortgage, inflation, deferred tax, class C shares, dividends payable, command economy, debt service coverage, irrevocable trust, margin rate, minority interest, balance sheet, per diem, FTSE, 1035 exchange, current ratio, risk management, diluted share, 144a, phantom income, LIBOR, open position, Zero Cost Collar, 401a, covered put, deferred revenue, Key Rate Duration


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use