Refinance Loan-to-Value (Refi LTV)

How much of the property's value you borrow at refi — 75% pulls more cash, 70% has better cashflow.

Definition

LTV determines how much of your capital gets recycled at refi. Higher LTV = more cash back but larger mortgage and lower cashflow. Kaison shows a side-by-side comparison of two LTV scenarios so you can see the tradeoff.

Formula

Refi Loan = ARV × LTV%

How Kaison Uses This

Default 75% (Max Cash Out). Compare in the LTV Strategy Comparison table.

Example

75% of $185k ARV = $138,750 refi loan

Pro Tip

If DSCR is below 1.2 at 75%, drop to 70% — better cashflow and easier lender approval.

Related Terms

Debt Service (Monthly Mortgage)

Monthly mortgage payment on the refinanced loan.

Cash Left in Deal

Capital trapped after refi — the denominator of your CoC return.

Debt Service Coverage Ratio (DSCR)

Net operating income divided by debt payments — can the property pay its own mortgage?

Educational content only. Consult a CPA or attorney for advice specific to your situation.