Current CLTV Sample Clauses

The 'Current CLTV' clause defines the current combined loan-to-value (CLTV) ratio for a property, which is the total amount of all outstanding loans secured by the property divided by its current appraised value. This clause typically specifies how the CLTV is calculated, including which loans are included and how the property value is determined, such as through a recent appraisal or market assessment. Its core function is to provide a clear metric for assessing the borrower's equity position and risk, ensuring that both parties understand the financial leverage on the property at any given time.