What is High Loan-to-value Fee?


A fee that may be charged by a mortgage lender when a borrower borrows a high percentage of the value of a property. This is usually set at loans of 75% or more of the property’s value. The fee is used to insure the lender (but not the borrower) against possible loss arising if the borrower defaults on the mortgage payments and the lender is forced to repossess and sell the property, but the sale proceeds are insufficient to cover the original loan.


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