How Are Mortgage Loan Amounts Calculated?

There are certain criteria that are  taken into consideration while deciding what amount is to be paid to somebody who is going to mortgage his property to take a loan. First and foremost is the value of the property and that is decided by several factors. It includes the size, location and some other factors. They take care of these things because this way they will be able to recover their cost by selling it, if required.
      
If you are mortgaging something else and not the property, then also they will need to see that they will be able to recover their loan amount or not. It is for this reason that they do not pay you the whole amount of the value of your property as if it is required to recover the cost by selling the property; they can get back the cost and interest also by selling it.