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# How does the Sales Price and Appraisal Value affect the Loan to Value (LTV) ratio calculation?

The LTV on the Calculations page is calculated by dividing the loan amount by the lower value of the Sales Price or Appraisal Value entered on the Collateral Details page. For Fannie Mae and Freddie Mac transactions, this value must be truncated to two decimal places and then rounded up to the nearest whole percent when disclosed on such documents as the Uniform Underwriting and Transmittal Summary.

While specific rounding requirements do not apply for FHA and Inhouse transactions, the same rounding used for Fannie Mae and Freddie Mac transactions will be applied when the LTV is disclosed for FHA and Inhouse transactions.