How to Find a Loan Value
- 1). Determine the value of the collateral or asset in question. Often collateral is a house, but it may also be a car, vehicle or other personal property with substantial value. Most often the only accurate way to determine the value of the collateral in question is to have it appraised because property values---for homes and personal property---fluctuate. If you plan to take a loan against securities that you hold or a whole life insurance policy, determine the current market value of the securities or the benefit value of the policy.
- 2). Ask your loan provider what percentage it will loan against the collateral in question. For example, many lenders will loan up to 80 percent of the appraised value of a home. You can now calculate the loan value by taking this percentage and applying to the value of the collateral in question. A home worth $200,000 would have a loan value of $160,000. On the other hand, the amount that lenders can loan against securities and life insurance policies may be less depending on the current federal regulations regarding those types of holdings and the policies in place at the institution in question.
- 3). Account for the amount you still owe on the collateral, in the case of a collateral. If you are still making payments on the collateral, the lending institution may require you to subtract the amount you still owe from the loan value in Step 2. If you owe $125,000 on the home in question, then the loan value becomes $35,000 if that is the case.
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