Equity Home Loans

FHA Home Loan question.?

On our loan agreement it lists 3 things: P&I LTV CLTV I know P&I is principal and interest. What does LTV and CLTV stand for? Also, we can't figure out what it is asking us to pay per month. It says the P&I is $501, the LTV is 97.75, the CLTV is 97.75, and that the total points payable on our loan are 1%, equal to $782. So do we pay $501/mo or $782?? Sorry, first time home buyers/borrowers here. Thanks for your help!

Public Comments

1. LTV means "loan to value" so if you put 20% down, your loan to value would be 80%. CLTV is "combined loan to value".. if you put 10% down, get an 80% first mortgage and a 10% second mortgage, your CLTV would be 90%. Your monthly payment would be $501 plus taxes and insurance and PMI (private mortgage insurance) The $782 is what your are paying the loan officer to do the loan. 1 pt. is one percent of the borrowed amount. A good Loan Officer should have explained ALL of this to you... and more. Good Luck.
2. No need to apologize. Others probably have the same questions. LTV is loan to value. You are putting down 2.25% CLTV is combined loan to value and is generally the same as LTV unless you are using two loans to purchase the property. The $782 is the 1% fee you are paying to the lender, either as an origination fee or a discount fee. You will only pay that once. Your total loan payment will be the $510 principal and interest plus taxes, insurance and mortgage insurance. Congratulations on the purchase of your home and good luck.
3. LTV = loan to value CLTV= combine loan to value You are borrowing 97.75% of the total value of your home. The reason for these too terms is simple- Perhaps you had someone who would loan you 80% of the money to buy a home but wanted to make sure you put 20% down and didn't borrow that 20% from someone else the conditions for the loan would be 80% LTV and 80% CLTV. I f they didn't care where you got the rest of your money even if you borrowed it from someone else your condition would read 80%LTV and 100%CLTV. As to the one point -- this loan looks like an FHA and your broker or banker generally charges that point- However it could also a buy down to get a lower rate.Whatever it is it is paid at closing and you are done with it . Your house payment will be $501/MO. I am a mortgage guy e mail me if you need something else
4. If you plan to pay back the money , you can ask for a loan at Prosper. More information at http://www.acreditlibrary.com/prosper.html . You can also try your luck at online charities, people may send donations. More information at http://www.laodn.org/