High Ratio Loan

Dictionary Says

Definition of 'High Ratio Loan'

A loan of any type for which a relatively small down payment must be made. For mortgages, a high value loan usually covers more than 80% of the property's value. Most high ratio home loans require some form of insurance coverage in order to protect the lender.
Investopedia Says

Investopedia explains 'High Ratio Loan'

High ratio home loans allow lower income and asset buyers to purchase homes with relatively little cash on hand. The wisdom of this business practice has been called into question during the mortgage crisis of 2008. High ratio loans generally charge higher rates than lower ratio loans.

Related Definitions

Search results for

'High Ratio Loan'

  • Debt Ratios: Debt-Equity Ratio | Investopedia

    http://www.investopedia.com/university/ratios/debt/ratio3.asp
    ... and Lincoln Electric, cannot command these high leverage positions ... Next: Debt Ratios:
    Capitalization Ratio ». Table of Contents. ... $30K Home Equity Loan, 5.74%, 5.77 ...
  • Banking Sector Still Dealing With Problem Loan Issue

    http://stocks.investopedia.com/stock-analysis/2009/Banking-Sector-Still-Dealing-With-Problem-Loan-Issue-MI-SNV-FBG0902.aspx
    ... Another thought to consider is that just because a bank has a high problem
    loan ratio does not mean that it will fail. An investor ...
  • Debt Ratios: Cash Flow To Debt Ratio | Investopedia

    http://www.investopedia.com/university/ratios/debt/ratio6.asp
    ... Thus, it is not surprising that its cash flow to debt ratio is very high. ... Debt Ratios:
    Cash Flow To Debt Ratio. ... $30K Home Equity Loan, 5.74%, 5.77%. ...
  • Debt Ratios: Interest Coverage Ratio | Investopedia

    http://www.investopedia.com/university/ratios/debt/ratio5.asp
    ... Creditors have a high comfort level with companies that can easily ... Next: Debt Ratios:
    Cash Flow To Debt Ratio ». Table of ... $30K Home Equity Loan, 5.74%, 5.77%. ...
  • Conquering The Terms Of Your Mortgage

    http://www.investopedia.com/articles/mortgages-real-estate/08/loan-to-value.asp
    ... a smaller mortgage balance as compared to high LTV loans ... used is the debt service
    coverage ratio (DSCR); it is calculated by dividing the monthly loan costs by ...
  • Debt Ratios: Capitalization Ratio | Investopedia

    http://www.investopedia.com/university/ratios/debt/ratio4.asp
    ... in a highly competitive business, if hobbled by high debt, will ... Next: Debt Ratios:
    Interest Coverage Ratio ». Table of Contents. ... $30K Home Equity Loan, 5.74%, 5.77 ...
  • Too Much Debt For A Mortgage?

    http://www.investopedia.com/articles/07/debt_to_income.asp
    ... Unfortunately, a high debt-to-income ratio often means that there aren ... A
    debt-to-income ratio of 37-40% is often ... may be willing to give you the loan, that ...
  • What Countries Get For Their High Taxes - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1210/What-Countries-Get-For-Their-High-Taxes.aspx
    ... benefits. Burdened with a 43.3% tax-to-GDP ratio, the country imposes a
    personal income tax rate as high as 45% and a 20% VAT. It ...
  • Debt Ratios: The Debt Ratio | Investopedia

    http://www.investopedia.com/university/ratios/debt/ratio2.asp
    ... to assets a company has, which is signaled by a high debt ratio ... Next: Debt Ratios:
    Debt-Equity Ratio ». Table of Contents. ... $30K Home Equity Loan, 5.74%, 5.77%. ...
  • What Countries Get For Their High Taxes Slideshow | Investopedia

    http://www.investopedia.com/slide-show/countries-high-taxes
    ... Burdened with a 43.3% tax-to-GDP ratio, the country imposes a personal income tax
    rate ... What Countries Get For Their High Taxes. ... $30K Home Equity Loan, 5.74%, 5.77 ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links