LTV Calculator (Loan-to-Value)

What formulas does this tool use?

This tool uses LTV = first mortgage ÷ property value × 100 and CLTV = (first mortgage + second mortgage or HELOC balance) ÷ property value × 100. Equity amount is value − first mortgage − second mortgage, and equity percentage is 100 − CLTV, so a second lien reduces equity but does not change the LTV figure.

When does the tool say PMI is required?

It flags PMI when the LTV of the first mortgage alone is above 80%, and says no at 80% or below. That is the tool’s own threshold; whether mortgage insurance actually applies, and how it is priced or removed, depends on the lender and loan type, so confirm it with them.

What are the LTV status bands?

Below 60% reads Excellent, 60% up to 75% reads Good, 75% through 80% reads Standard, above 80% through 95% reads PMI zone, and above 95% reads High risk. These are descriptive labels built into this tool and are not lender approval criteria.

Does a second mortgage change the status or the PMI flag?

No. Both are decided from the first-mortgage LTV only. With a $320,000 first loan and a $40,000 HELOC on a $400,000 home, CLTV shows 90.00% while the status still reads Standard and PMI shows no, because LTV remains 80.00%. Read CLTV separately if a lender will look at combined debt.

What does it mean if the loan exceeds the value?

LTV goes above 100%, equity percentage and equity amount turn negative, and the status shows High risk. The tool does not block such inputs. Use an appraised or estimated value you trust, because every output moves in direct proportion to it.

What happens with a value of zero?

A property value of 0 gives no ratio, because the loan would be divided by zero, so the tool shows an error saying the property value must be greater than 0. A cleared box counts as 0 and does not restore the form default: a cleared property value shows that error, and a cleared loan amount gives an LTV of 0.00%.

Why is CLTV shown as N/A?

When the second-mortgage field is 0 (which is also what a cleared box becomes), there is nothing to combine, so the tool prints N/A rather than repeating the LTV. Enter any balance above zero and the CLTV appears.

What does this tool not cover?

It does not estimate PMI cost, the monthly payment, closing costs, or the value of the property. It also does not model how the ratio changes as you pay the loan down; for that, enter the future balance and expected value yourself.