Loan-to-Value (LTV) Calculator
See where your financing stands using the loan-to-value (LTV) ratio—the share of a property’s value that’s financed. It’s essential when you’re qualifying for a mortgage, estimating PMI duration, planning a refinance, or checking cash-out limits. We highlight common thresholds (like 80% for PMI removal and tighter caps for cash-out) so you can quickly gauge risk, pricing tiers, and eligibility.
The loan-to-value (LTV) calculator lets you explore scenarios: adjust down payment, test different appraised values, or model extra principal to see how fast you cross key cutoffs. The goal is clarity—understand how leverage affects rates, fees, and insurance—and the benefit is a concrete plan to lower borrowing costs, time PMI cancellation, and hit a target LTV for better offers.
Equity & LTV snapshot — enter your home value and current loan balance to see your LTV and equity instantly.
LTV tells us what share of your home’s value is financed by debt. Equity is the portion you own: value minus what you owe.
Results interpretation
How it works
We use two simple inputs to compute LTV and equity. This snapshot is useful for PMI, refinance, HELOC eligibility, and general planning.
Formulas, assumptions, limitations
LTV formula. LTV% = (Loan balance ÷ Home value) × 100.
Equity formula. Equity = Home value − Loan balance (can be negative).
Thresholds. Common checkpoints: 90%, 85%, 80%, 78% (PMI-related on conventional loans).
Rounding. We display LTV to one decimal place; equity shows cents.
Scope. This is a snapshot—no amortization or appreciation modeling in this tool.
Use cases & examples
If LTV ≤ 80%, you may access more refinance options and better pricing in some cases.
At ~80% LTV on a conventional loan, you may be able to request PMI removal.
Many lenders cap combined LTV for HELOCs; knowing your base LTV is a first step.
LTV FAQs
What is a good LTV?
Lower is better. 80% or less is a common goal for PMI removal and favorable refi terms.
Can equity be negative?
Yes. If the loan balance exceeds the home value, equity is negative (underwater).
Does this tool include second mortgages?
No. This tool is for a single loan. For multiple liens, consider combined LTV (CLTV).
How accurate is my home value?
Use a recent appraisal or comps. Online estimates vary; better inputs yield better results.
Why is LTV important?
LTV affects PMI, refinance pricing, HELOC limits, and general borrowing risk.
How can we lower LTV?
Pay down principal or increase home value (renovations, appreciation). A new appraisal may document higher value.
Mastering Loan-to-Value: a quick path to smarter mortgage decisions
Loan-to-Value (LTV) sits at the heart of mortgage lending. It’s a single percentage that influences whether you need mortgage insurance, what rates you’re offered on a refinance, and how much equity you can tap with a HELOC. By understanding LTV and how it changes, we can make better, faster decisions that save money.
What LTV tells us
LTV compares what you owe to what the home is worth. If you owe $360,000 on a $450,000 home, your LTV is 80%. Lenders use this metric because it bundles risk factors into one number: the higher the LTV, the thinner the equity cushion protecting the lender.
Key thresholds and why they matter
- 90–95% LTV: Common for low-down-payment loans; usually requires mortgage insurance.
- 85–90% LTV: Still elevated, but moving toward better pricing.
- 80% LTV: A pivotal line—often the point where PMI can be removed on conventional loans.
- ≤ 75% LTV: Frequently associated with more favorable refinance and HELOC terms.
Why equity matters alongside LTV
Equity is your ownership stake. Positive equity creates flexibility—refinancing options, lines of credit, and better resilience against market swings. Negative equity limits options and raises risk; in those scenarios, extra principal payments and careful budgeting can help regain footing.
Improving LTV: the levers we control
- Pay down principal. Rounding up monthly payments compounds over time.
- Document market value. If comps support a higher value, a new appraisal can drop LTV immediately.
- Choose projects that appraise. Not all renovations add value; focus on kitchens, baths, and curb appeal.
- Monitor rates and programs. As LTV drops, better refi offers may appear—shop periodically.
CLTV and multiple liens
If you have a second mortgage or HELOC, lenders often look at Combined LTV (CLTV), which sums all secured balances. While this tool focuses on a single loan, the same principles apply when you add more liens: the higher the combined balance relative to value, the tighter the terms may become.
Putting it all together
Our calculator gives a clean snapshot of today’s LTV and equity using your best current estimate of value. Pair it with an amortization schedule and a local market check to see where you’re headed. With a solid handle on LTV, we can time PMI removal, plan refinances, and make renovation decisions with confidence.