LTV Calculator - Loan-to-Value Ratio for Mortgage & Refinancing
Calculate your Loan-to-Value (LTV) and Combined LTV (CLTV) ratios instantly. See how LTV affects PMI, interest rates, and loan approval.
Show this tool on your website
Calculator
Results
Loan vs Equity Breakdown
What is LTV?
Loan-to-Value (LTV) ratio measures your loan size relative to your property value. Formula: (Loan Amount ÷ Home Value) × 100. For example, a $280,000 loan on a $350,000 home = 80% LTV. Lenders use LTV to assess risk — lower LTV means less risk and better loan terms.
Why 80% LTV is the Magic Number
80% LTV is critical for conventional loans. Below 80% LTV: No PMI required, best interest rates, easier approval. Above 80% LTV: PMI required ($50-$300/month), slightly higher rates. At exactly 80% LTV, you can request PMI removal. Staying below 80% can save thousands per year.
LTV vs CLTV - What's the Difference?
LTV measures your primary mortgage only. CLTV (Combined Loan-to-Value) includes ALL loans secured by your home: first mortgage + second mortgage + HELOCs + home equity loans. Example: $300K home, $200K first mortgage, $40K HELOC. LTV = 66.7%. CLTV = 80%. Lenders use CLTV when you have multiple loans.
LTV Requirements by Loan Type
Conventional: Max 97% LTV (80% ideal for no PMI) • FHA: Max 96.5% LTV • VA: 100% LTV allowed (no down payment) • USDA: 100% LTV (eligible rural properties) • Jumbo: Often 80% max LTV • Investment property: 75-80% max LTV. Different loan types have different LTV limits.
How to Lower Your LTV
1. Make a larger down payment (reduces loan amount). 2. Pay down principal faster (extra payments). 3. Wait for home appreciation (increases home value). 4. Home improvements that increase value. Benefits of lower LTV: Remove PMI, refinance at better rates, access home equity, easier loan approval.
PMI and LTV Connection
PMI (Private Mortgage Insurance) is required for conventional loans above 80% LTV. Cost: 0.5-1.5% of loan amount annually ($50-$350/month typical). Automatically removed at 78% LTV. Can request removal at 80% LTV with good payment history. FHA loans have MIP (Mortgage Insurance Premium) with different rules — often for loan life if <10% down.
LTV for Cash-Out Refinance
Most lenders cap cash-out refinance at 80% LTV (some allow 85-90%). Example: $400K home, 80% max LTV = $320K max loan. If you owe $250K, you can cash out $70K ($320K - $250K). Lower LTV = better rates. Investment properties typically limited to 75% LTV for cash-out refi.
Appraisal Risk Warning
⚠️ Lenders use THEIR appraisal, not your estimate or Zillow's Zestimate. If appraisal comes in low, your LTV increases unexpectedly. Example: You expect $400K value, appraisal says $360K. Your $280K loan jumps from 70% LTV to 77.8% LTV. Always budget for lower-than-expected appraisals on purchases and refinances.
Sources & References
Key Financial Terms
Understand the essential concepts behind this calculator
LTV (Loan-to-Value Ratio)
The percentage of the loan amount compared to the appraised value of the asset being purchased.
PMI (Private Mortgage Insurance)
Extra monthly cost added to mortgage if down payment is less than 20% of home value.
Home Equity
The portion of your home's value that you actually own (market value minus mortgage balance)
Down Payment
The initial cash payment made when purchasing a vehicle, reducing the amount you need to finance.
Frequently Asked Questions
Common questions about the LTV Calculator - Loan-to-Value Ratio for Mortgage & Refinancing
Explore More Tools
Continue your financial journey with these related calculators
Mortgage Calculator
Calculate monthly mortgage payment, total interest, and complete cost of homeownership with amortization
Down Payment Savings Calculator
Plan how long it will take to save for your home down payment with interest earnings
Homeowner Cost Forecaster
Annual maintenance budget + appliance replacement timeline + property tax growth projections
⚠️ Important Disclaimer
This LTV Calculator - Loan-to-Value Ratio for Mortgage & Refinancing provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.