LTV Calculator (Loan-to-Value)
Loan divided by value — the ratio that prices mortgage risk and triggers PMI. Includes an optional second loan for the combined figure lenders use when two loans stack.
One ratio that prices mortgage risk
Loan-to-value compresses a lending decision into a single percentage: how much of the property's value the debt claims. It drives approval, pricing tiers and the PMI question — lenders think in LTV bands (80, 90, 95) the way airlines think in fare classes.
LTV = loan ÷ value × 100 · Combined LTV adds every loan secured on the property
Example: a $240,000 loan on a $300,000 home: LTV 80% — precisely the line below which conventional loans drop PMI. Add a $30,000 second loan and the combined LTV is 90%, which is how the lender actually sees the stack.
Value means the appraised value, or the price — the lower one
For a purchase, lenders generally use the lesser of the appraised value and the contract price; for a refinance, the appraisal alone. Buyers who 'got a deal' below appraisal do not get to spend the difference in LTV — enter the conservative figure here too.
How this is calculated
LTV = entered loan ÷ entered value. Equity = value − total loans against it. CLTV includes the optional second loan in both the ratio and the equity remainder. Nothing is sourced from an appraisal or a credit decision — this is the arithmetic lenders then apply their tables to.
Frequently asked questions
What LTV do I need to drop PMI?
On conventional loans, PMI can typically be requested away at 80% LTV (by payment or new appraisal) and terminates automatically at 78% of the original value on most loans. FHA's MIP follows different rules — see the FHA page.
Does a higher LTV mean a higher rate?
Generally yes — pricing adjustments step up at the bands. The difference between 80% and 80.1% can be a real fee or rate bump, which is why down payments cluster exactly at the lines.
What is HCLTV?
Home-equity combined LTV: it counts the full credit limit of a HELOC, not just the drawn balance, in some underwriting. The conservative cousin of CLTV, relevant when a line sits behind a first mortgage.
Can LTV exceed 100%?
Yes — after price falls or with high-LTV products, producing negative equity ('underwater'). The calculator reports it without flinching; it is a description, not a judgment.
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