Appraised value of your home
Sometimes called a property valuation, the appraised value of your home is an informed estimate of the value of property. If it has been a few years since you purchased your home, your home value may have changed significantly up or down.
Mortgages you owe
This is the total of all outstanding mortgages on your home. This should include your first mortgage, second mortgages and any other debt that is secured by your home. All existing junior liens will have to be paid off with the proceeds of the new line.
The loan-to-value ratio is the maximum percent of your home's appraised value that a lender will allow. For example, at our current maximum loan-to-value ratio of 85%, we would allow you to have $85,000 in debt secured by a home appraised at $100,000. Remember - the total debt allowed includes all outstanding mortgages plus your new line of credit. The maximum LTV that Sandy Spring Bank will allow is 85%.