Appraised Value


Appraised Value
An evaluation of a property's value based on a given point in time that is performed by a professional appraiser during the mortgage origination process. The appraiser is usually chosen by the lender, but the appraisal is paid for by the borrower.

The appraised value of a home is an important factor in the loan underwriting process and plays a role in determining how much money may be borrowed and under what terms. For example, the loan to value (LTV) ratio is based on the appraised value.

In general, if the LTV is greater than 80%, the lender will require the borrower to buy private mortgage insurance. However, if the LTV drops to 78% upon a new appraisal, private mortgage insurance payments may be eliminated.


Investment dictionary. . 2012.

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  • Appraised value — An appraised value (USA) or mortgage valuation (Australia) pertains to the assessed value of real property in the opinion of a qualified appraiser or valuer. It is usually used as a pre qualification risk based pricing factor related to the… …   Wikipedia

  • value — val·ue 1 / val yü/ n 1 a: a fair return or equivalent in goods, services, or money for something exchanged received good value for the price b: valuable consideration at consideration …   Law dictionary

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  • Loan-to-value ratio — The loan to value (LTV) ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower borrows $130,000 to purchase a house worth $150,000, the LTV ratio is… …   Wikipedia

  • Loan to value — The loan to value (LTV) ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower wants $130,000 to purchase a house worth $150,000, the LTV ratio is… …   Wikipedia

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  • combined loan to value ratio — ( CLTV) A measure of collateral coverage provided by a consumer borrower s residence. The borrower s total senior and subordinated loan balances divided by the appraised value of the borrower s residence. American Banker Glossary …   Financial and business terms