What is Combined Loan-to-Value (CLTV) and how does Point use it?

During underwriting, we determine whether the total amount of loans secured by your home will stay within our allowable limit. To determine that, we look at the ratio between your combined secured loans (including your HEI offer) and your home's current value.

Sometimes referred to as Combined Loan-to-Value (CLTV), it’s calculated as:

(Current mortgage balances + Other secured loans + Point’s potential investment) ÷ Home value = CLTV

Point uses CLTV to ensure that after receiving our HEI, you still retain enough equity in your home to meet our eligibility requirements.

A lower CLTV generally means:

• You have more equity available

• You may qualify for a higher offer amount