How to Calculate Loan-to-Value Ratio
Divide your current loan balance by your 2025 Acura MDX value. Multiply the result by 100 to get the LTV percentage. Lenders check LTV to measure risk. Keep it under 80% for lower interest rates and faster refinance approval.
Step-by-Step Calculation
Check your latest loan statement for the balance. For example, it shows $25,000.
Find your 2025 Acura MDX value. Use sites like Kelley Blue Book or Edmunds. Enter details for clean condition in ZIP 85281. Current values run around $48,000.
Divide loan by value: $25,000 / $48,000 = 0.52.
Multiply by 100: 52% LTV.
Why LTV Matters for Refinancing
Lenders look at LTV first. Under 100% shows positive equity. You owe less than your car is worth. This lowers their risk.
Over 100% means negative equity. You owe more than the value. Lenders often deny the refinance or charge high rates. Most allow up to 120% to 125% LTV.
Low LTV saves cash. Drop your rate from 7% to 4.5% on a $25,000 loan. Save $1,200 over 5 years.
Your 2025 Acura MDX keeps strong value in Tempe, AZ, like ZIP 85281. Aim for under 80% LTV to boost your refinance chances.
Refinancing Examples
| Loan Balance | Car Value | LTV Calculation | Result |
|---|---|---|---|
| $30,000 | $35,000 | ($30,000 / $35,000) x 100 | 86% - Good for approval |
| $22,000 | $20,000 | ($22,000 / $20,000) x 100 | 110% - Higher rates or denial |
Tips to Lower Your LTV
- Pay down principal. Add $2,000 to drop LTV by about 5 points.
- Wait for value to rise. Acura MDX resale stays strong. Check values each month.
- Shop lenders. Some accept up to 150% LTV but add fees.
- Use free calculators. Enter details on sites like RateGenius.
Sidekick tracks your 2025 Acura MDX value in real time for ZIP 85281. Calculate LTV fast and get refinance alerts.