Loan to Value Ratio Calculator

Calculate LTV ratio and equity position

Property Value
Loan Information
LTV Results
LTV Status
Current LTV: 80%
Combined LTV: 80%
PMI required until 80% LTV
Home Value: $0.00
Total Loans: $0.00
Home Equity: $0.00
Equity Percentage: 0%
Original LTV: 0%
Appreciation: $0.00
Principal Paid: $0.00
To 80% LTV: $0.00 more equity needed
To Remove PMI: Need $0.00 more

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What is Loan-to-Value Ratio?

LTV is the ratio of your loan amount to your property's value, expressed as a percentage. Lower LTV means more equity and less risk for lenders. 80% LTV or lower typically avoids PMI on conventional loans.

Formula: LTV = (Loan Balance Ă· Property Value) Ă— 100

How to Use This Calculator

Step 1: Enter current estimated home value.
Step 2: Input current loan balance.
Step 3: Add any second mortgages or HELOCs.
Step 4: Optional: Enter original purchase price and loan amount for equity analysis.
Step 5: Click "Calculate LTV" to see results.

LTV Thresholds

  • ≤80%: No PMI required on conventional loans
  • ≤90%: May require PMI, but lower rates
  • ≤97%: Maximum for most conventional loans
  • 100%+: Underwater (negative equity)

Combined LTV (CLTV) includes all loans against the property. Lenders look at both LTV and CLTV for risk assessment.

Frequently Asked Questions

What is a good LTV ratio?
80% or lower is ideal—avoids PMI and gets best rates. 90% is acceptable for many loans with PMI. Over 95% is high-risk and limits loan options. Lower is always better for rates, terms, and equity cushion.
How do I calculate LTV?
Divide your loan balance by property value, multiply by 100. Example: $320,000 loan Ă· $400,000 value = 0.80 = 80% LTV. This calculator does it automatically and shows combined LTV including all loans.
What is combined LTV (CLTV)?
CLTV includes all loans secured by the property: first mortgage + second mortgage + HELOC Ă· property value. Lenders use CLTV to assess total risk. You might have 70% LTV on first mortgage but 90% CLTV with a HELOC.
At what LTV can I remove PMI?
Request removal at 80% LTV based on original value. Automatic termination at 78% LTV of original value. With appreciation, you may remove earlier by proving current value with appraisal (check lender requirements).
Does home appreciation lower my LTV?
Yes, if your home value increases while loan balance stays same or decreases, LTV drops. This builds equity faster. Some homeowners remove PMI early by proving appreciation through new appraisal—if supported by comparable sales.
What LTV is needed for refinance?
Conventional refinance typically needs 80% LTV to avoid PMI, though some programs allow higher. Cash-out refinance usually limited to 80% LTV. FHA streamline has no LTV requirement. VA IRRRL has no limit. Each program has different requirements.
Can I get a loan with 100% LTV?
VA loans allow 100% LTV (0% down). USDA loans allow 100% for eligible rural areas. Most conventional loans max at 97% (3% down). 100%+ LTV means underwater—owing more than home value—which limits options significantly.
How does LTV affect interest rates?
Lower LTV gets better rates. Rates often tier at 60%, 70%, 75%, 80%, 85%, 90%, and 95% LTV breakpoints. 80% LTV or lower typically gets best conventional rates. High LTV loans have higher rates plus PMI costs.
What is negative equity?
When LTV exceeds 100%—you owe more than home is worth. Also called "underwater" or "upside down." Limits refinance options, makes selling difficult without bringing cash to closing. Can happen when home values drop or with minimal down payments.
How fast does LTV decrease?
With normal amortization, LTV drops slowly early in loan (mostly interest), faster later. On 30-year loan, might take 7-10 years to reach 80% LTV through payments alone. Extra principal payments accelerate this significantly.
Should I pay down to 80% LTV?
If paying PMI, yes—eliminating PMI saves $100-400/month. If no PMI, consider opportunity cost: could that money earn more invested elsewhere? Also maintain emergency fund. Calculate break-even: PMI savings vs. lost investment returns.
Does appraisal affect LTV?
Yes, LTV uses current value. For purchase, LTV based on lower of purchase price or appraisal. For refinance, based on current appraisal. Low appraisal can increase LTV, potentially requiring more down payment or causing loan denial.