LTV Calculator (Loan-to-Value)
Calculate loan-to-value ratio for a property purchase or refinance, including PMI threshold and equity status.
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How to use this calculator
- 1
Enter the appraised value of the property.
- 2
Enter your first mortgage loan amount.
- 3
If you have a second mortgage or HELOC, enter that balance too.
- 4
Review your LTV ratio, whether PMI is required, and your equity position.
Frequently asked questions
What is a good LTV ratio?
An LTV below 80% is considered standard and avoids PMI. An LTV below 60% is excellent and may qualify for the best mortgage rates. An LTV above 95% is considered high risk and may limit your lender options.
What is PMI and how do I avoid it?
Private Mortgage Insurance (PMI) is required when your LTV exceeds 80%. It protects the lender if you default. PMI typically costs 0.5–1.5% of the loan amount per year. You can avoid it by making a 20% down payment, or remove it later by requesting cancellation once your equity reaches 20%.
What is the difference between LTV and CLTV?
LTV considers only your primary mortgage. CLTV (Combined LTV) adds all mortgages and home equity loans against the property value. Lenders use CLTV to evaluate risk when you have multiple liens on the property.
Loan-to-Value (LTV) Ratio Calculator
How LTV affects your mortgage rate and terms
Lenders use LTV as a primary risk metric. A lower LTV signals more equity and less default risk, which typically results in lower interest rates and better terms. Borrowers with LTV above 80% are required to pay PMI, which can add hundreds of dollars per month to your housing costs until you build sufficient equity.
LTV and refinancing
When refinancing, a lower LTV gives you access to better rates and more lender options. If your home has appreciated significantly, your LTV may have dropped enough to eliminate PMI, access a cash-out refinance, or qualify for a rate-and-term refinance at a lower rate. Checking your LTV before refinancing helps you understand your negotiating position.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →