Loan to Value (LTV) Calculator
Assess lender borrowing risk and private mortgage insurance thresholds. Calculate your exact Loan-to-Value (LTV) ratio and home equity dollar value across purchases and refinancing.
Current market or appraisal valuation
Total principal loan balance outstanding
Debt balance as percentage of collateral value
How to Use This Calculator
- Enter the appraised fair market value of the property.
- Input the outstanding or requested mortgage loan balance.
- Check your LTV percentage and risk classification tier.
- Verify whether your LTV qualifies for removal of Private Mortgage Insurance (PMI).
Formula & Calculation Methodology
Evaluates mortgage credit risk by measuring debt claims against the liquidation collateral base.
Worked Example
$400,000 mortgage on a $500,000 home valuation
Frequently Asked Questions
Why is 80% LTV such an important threshold for homeowners?↓
An LTV of 80% or below allows conventional borrowers to eliminate Private Mortgage Insurance (PMI), saving $100 to $300 monthly.
What is Combined Loan-to-Value (CLTV)?↓
CLTV includes all liens on the home, combining your primary mortgage with home equity loans (HELOCs) or second mortgages.
How does an appraisal increase lower my LTV?↓
If your home appreciates in value, the higher denominator reduces your LTV ratio even if your mortgage balance remains unchanged.
What happens if my LTV exceeds 100%?↓
An LTV above 100% means the home is "underwater" or has negative equity, where you owe more to the bank than the property could sell for.
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Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.