LTV Calculator

Calculate your Loan-to-Value and Combined LTV ratios. Determine PMI status, equity position, and eligibility for refinance, HELOC, or home equity loans.

Property & Loan Details

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Appraised or estimated market value

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If applicable

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Current outstanding balance

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Judgments, tax liens, etc.

Ready to Calculate

Enter your home value and loan balances to see your LTV ratio, equity position, and eligibility status.

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Pro Tip

If your home has appreciated since purchase, getting a new appraisal could lower your LTV ratio. This might help you remove PMI or qualify for better refinance terms.

Explore Refinance Options →

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Understanding Loan-to-Value Ratio

The Loan-to-Value (LTV) ratio is one of the most important metrics in mortgage lending. It measures the relationship between the loan amount and the appraised value of the property, giving lenders a quantifiable measure of risk. The higher the LTV, the more risk the lender assumes because there is less equity cushion to protect them if the borrower defaults.

LTV influences nearly every aspect of your mortgage: whether you qualify, what interest rate you receive, whether PMI is required, and what loan programs are available to you. Understanding your LTV empowers you to make better decisions about when to refinance, when to request PMI removal, and whether you can tap your home equity.

Combined Loan-to-Value (CLTV) extends the concept to include all loans secured by the property. If you have a first mortgage of $300,000 and a HELOC with a $30,000 balance on a $400,000 home, your LTV is 75% but your CLTV is 82.5%. CLTV is especially important when applying for second liens like home equity loans or HELOCs.

Your LTV decreases over time through two mechanisms: paying down your mortgage principal and home value appreciation. In a strong housing market, appreciation can reduce your LTV faster than your mortgage payments alone. Conversely, in a declining market, your LTV can increase even as you make payments, potentially leading to negative equity (owing more than the home is worth).

LTV and CLTV Formulas

LTV = (Primary Mortgage Balance / Home Value) × 100%

Where:

LTV = Loan-to-Value ratio using only the primary (first) mortgage

CLTV = (All Mortgage Balances + HELOCs + Other Liens) / Home Value x 100%

Equity Amount = Home Value - Total Debt Secured by Property

Equity % = 100% - CLTV (your ownership stake as a percentage)

Example

$400,000 home with $300,000 first mortgage and $25,000 HELOC balance:

  • • LTV: $300,000 / $400,000 = 75%
  • • CLTV: ($300,000 + $25,000) / $400,000 = 81.25%
  • • Equity: $400,000 - $325,000 = $75,000 (18.75%)
  • • PMI: Not required (LTV <= 80%)
  • • HELOC eligible: No (CLTV > 80% for most lenders)

Frequently Asked Questions

What is Loan-to-Value (LTV) ratio?
LTV is the ratio of your primary mortgage balance to your home's current appraised value, expressed as a percentage. For example, if your home is worth $400,000 and your mortgage balance is $320,000, your LTV is 80%. Lenders use LTV to assess risk -- lower LTV means less risk.
What is the difference between LTV and CLTV?
LTV only considers your primary (first) mortgage. CLTV (Combined Loan-to-Value) includes all loans secured by the property: first mortgage, second mortgage, HELOC balances, and any other liens. CLTV is always equal to or higher than LTV.
At what LTV can I remove PMI?
You can request PMI removal when your LTV reaches 80% (20% equity) based on the original appraised value or a new appraisal. By law, lenders must automatically cancel PMI when your LTV reaches 78% of the original value through scheduled payments.
What LTV do I need for a HELOC or home equity loan?
Most lenders require a CLTV of 85% or less for a HELOC or home equity loan. Some lenders may go up to 90% for borrowers with excellent credit scores (740+). This means you generally need at least 15% equity after accounting for all existing loans.
How does LTV affect my interest rate?
Lower LTV generally qualifies you for better interest rates. Lenders view lower LTV as less risky because you have more equity protecting their investment. The best rates are typically available at 60% LTV or below, with rate increases at common thresholds like 80%, 90%, and 95% LTV.