Maximum Loan to Cost

The ratio between the principal amount of the mortgage balance, at origination or thereafter, to the current value (or cost of construction if a construction loan) of the underlying real estate collateral. The ratio is commonly expressed to a potential borrower as the percentage of value a lending institution is willing to finance. The ratio is dynamic and varies by lending institution, property type, geographic location, property size, among other things.

Maximum Loan to Cost
Definition The ratio between the principal amount of the mortgage balance, at origination or thereafter, to the current value (or cost of construction if a construction loan) of the underlying real estate collateral. The ratio is commonly expressed to a potential borrower as the percentage of value a lending institution is willing to finance. The ratio is dynamic and varies by lending institution, property type, geographic location, property size, among other things.
Type of Word Noun
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