{"id":67413,"date":"2026-10-21T10:22:02","date_gmt":"2026-10-21T07:22:02","guid":{"rendered":"https:\/\/wpcalc.com\/en\/?p=67413"},"modified":"2026-10-21T10:22:02","modified_gmt":"2026-10-21T07:22:02","slug":"loan-to-value-ltv-calculator","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/loan-to-value-ltv-calculator\/","title":{"rendered":"Loan-to-Value (LTV) Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 id=\"calculator-title\" class=\"text-lg font-display font-bold\">Check Your Loan-to-Value Ratio, CLTV and Equity<\/h2><\/div><div class=\"calcdash-favorite group\">\n  <button type=\"button\" class=\"favorite\" id=\"favorite\" data-favorite-id=\"67413\" data-favorite-title=\"LTV\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/loan-to-value-ltv-calculator\/\" data-favorite-excerpt=\"Quickly compute your loan-to-value (LTV) ratio, combined CLTV, and home equity from your mortgage balances and property value \u2014 or plan the loan amount and down payment needed to hit a target LTV. Enter an appraised value, purchase price, and up to two mortgages.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-loan\">\n    <span class=\"icon icon-shape-star-empty\" aria-hidden=\"true\"><\/span>\n  <\/button>\n  <div class=\"calcdash-favorite__tip\" aria-hidden=\"true\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n  <span class=\"sr-only\" role=\"status\" id=\"favorite-status\"><\/span>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/loan-to-value-ltv-calculator\/\" method=\"POST\" class=\"calculator\" id=\"calculator-67413\" data-post=\"67413\"><fieldset class=\"fieldset-input is-2\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"field\" id=\"input-1\"><label for=\"field-1\">Mode<\/label><div class=\"grid grid-cols-1\"><select id=\"field-1\" name=\"mode\"><option value=\"f\" selected>Check my LTV<\/option><option value=\"r\">Plan for a target LTV<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><div class=\"field\" id=\"input-2\"><label for=\"field-2\">Appraised value<\/label><input type=\"text\" name=\"appraised_value\" id=\"field-2\" aria-describedby=\"calc-unit-2 calc-info-2\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0.01\" value=\"400000\"\/><div class=\"unit\" id=\"calc-unit-2\">$<\/div><small id=\"calc-info-2\">Appraised value or your best current market estimate.<\/small><\/div><div class=\"field\" id=\"input-3\"><label for=\"field-3\">Purchase price<\/label><input type=\"text\" name=\"purchase_price\" id=\"field-3\" aria-describedby=\"calc-unit-3 calc-info-3\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"0\"\/><div class=\"unit\" id=\"calc-unit-3\">$<\/div><small id=\"calc-info-3\">Enter 0 to skip. Lenders base LTV on the lower of price and appraisal.<\/small><\/div><div class=\"is-single field\" id=\"input-4\"><span class=\"font-semibold\">Loans<\/span><\/div><div class=\"field\" id=\"input-5\"><label for=\"field-5\">Loan amount given as<\/label><div class=\"grid grid-cols-1\"><select id=\"field-5\" name=\"loan_amount_given_as\"><option value=\"loan\" selected>Loan amount<\/option><option value=\"down\">Down payment<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><div class=\"field\" id=\"input-6\" hidden><label for=\"field-6\">First mortgage amount<\/label><input type=\"text\" name=\"first_mortgage_amount\" id=\"field-6\" aria-describedby=\"calc-unit-6 calc-info-6\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"320000\"\/><div class=\"unit\" id=\"calc-unit-6\">$<\/div><small id=\"calc-info-6\">Current or planned principal balance of the first mortgage.<\/small><\/div><div class=\"field\" id=\"input-7\" hidden><label for=\"field-7\">Down payment<\/label><div class=\"field-group\"><input type=\"text\" name=\"down_payment\" id=\"field-7\" aria-describedby=\"calc-info-7\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"20\"\/><div class=\"grid grid-cols-1\"><select id=\"field-8\" name=\"as\" aria-label=\"As\"><option value=\"pct\" selected>% of price<\/option><option value=\"usd\">$ amount<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><small id=\"calc-info-7\">Conventional loans allow 3\u201320% down; PMI disappears at 20%.<\/small><\/div><div class=\"field\" id=\"input-8\"><label for=\"field-9\">Second mortgage \/ HELOC<\/label><input type=\"text\" name=\"second_mortgage_heloc\" id=\"field-9\" aria-describedby=\"calc-unit-9 calc-info-9\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"0\"\/><div class=\"unit\" id=\"calc-unit-9\">$<\/div><small id=\"calc-info-9\">Piggyback second, HELOC or home equity loan balance. Enter 0 if none.<\/small><\/div><div class=\"is-single field\" id=\"input-9\"><span class=\"font-semibold\">Target LTV (Planning Mode)<\/span><\/div><div class=\"field\" id=\"input-10\"><label for=\"field-11\">Target LTV<\/label><div class=\"grid grid-cols-1\"><select id=\"field-11\" name=\"target_ltv\"><option value=\"80\" selected>80% \u2014 no-PMI zone<\/option><option value=\"90\">90% \u2014 10% down<\/option><option value=\"97\">97% \u2014 conventional max<\/option><option value=\"100\">100% \u2014 VA \/ USDA<\/option><option value=\"96.5\">96.5% \u2014 FHA max<\/option><option value=\"custom\">Custom<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><div class=\"field\" id=\"input-11\" hidden><label for=\"field-12\">Custom target LTV<\/label><input type=\"text\" name=\"custom_target_ltv\" id=\"field-12\" aria-describedby=\"calc-unit-12\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"1\" max=\"100\" value=\"85\"\/><div class=\"unit\" id=\"calc-unit-12\">%<\/div><\/div><div class=\"field is-checkbox\" id=\"input-12\"><input type=\"checkbox\" id=\"field-13\" value=\"1\" checked=\"checked\"\/><label for=\"field-13\">Count second mortgage in the target<\/label><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"67413\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> LTV Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>LTV \u2014 first mortgage<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"%\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-2\"><span class=\"field-title\"><span>CLTV \u2014 all mortgages<\/span><\/span><span class=\"field-value\" id=\"result-2\" data-unit=\"%\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-3\"><span class=\"field-title\"><span>Home equity<\/span><\/span><span class=\"field-value\" id=\"result-3\" data-unit=\"%\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-4\"><span class=\"field-title\"><span>Down payment \/ cash needed<\/span><\/span><span class=\"field-value\" id=\"result-4\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-5\"><span class=\"field-title\"><span>Total mortgage debt<\/span><\/span><span class=\"field-value\" id=\"result-5\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result is-column\" id=\"output-6\"><span class=\"field-title\"><span>What Your LTV Means<\/span><\/span><span class=\"field-value\" id=\"result-6\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-7\"><span class=\"field-title\"><span>Maximum first mortgage at the target<\/span><\/span><span class=\"field-value\" id=\"result-7\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-8\"><span class=\"field-title\"><span>Required down payment<\/span><\/span><span class=\"field-value\" id=\"result-8\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result is-column\" id=\"output-9\"><span class=\"field-title\"><span>Loan Program Maximums<\/span><\/span><span class=\"field-value\" id=\"result-9\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><\/div><div class=\"result-actions\"><button type=\"button\" class=\"copy-link\"><svg viewBox=\"0 0 20 20\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M12.232 4.232a2.5 2.5 0 0 1 3.536 3.536l-1.225 1.224a.75.75 0 0 0 1.061 1.06l1.224-1.224a4 4 0 0 0-5.656-5.656l-3 3a4 4 0 0 0 .225 5.865.75.75 0 0 0 .977-1.138 2.5 2.5 0 0 1-.142-3.667l3-3Z\"\/><path d=\"M11.603 7.963a.75.75 0 0 0-.977 1.138 2.5 2.5 0 0 1 .142 3.667l-3 3a2.5 2.5 0 0 1-3.536-3.536l1.225-1.224a.75.75 0 0 0-1.061-1.06l-1.224 1.224a4 4 0 1 0 5.656 5.656l3-3a4 4 0 0 0-.225-5.865Z\"\/><\/svg><span class=\"copy-link__text\">Copy link to this calculation<\/span><\/button><span class=\"sr-only\" role=\"status\" id=\"copy-link-status\"><\/span><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"67413\" aria-live=\"polite\" aria-labelledby=\"calc-reactions-title\"><p id=\"calc-reactions-title\" class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/p><div role=\"group\" aria-labelledby=\"calc-reactions-title\" class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><div class=\"calcdash-ad not-prose calcdash-ad--calc_result calcdash-ad--in-article\"><ins class=\"adsbygoogle\" style=\"display:block\" data-ad-client=\"ca-pub-1721569815777345\" data-ad-slot=\"6317458308\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\"><\/ins><script>(adsbygoogle = window.adsbygoogle || []).push({});<\/script><\/div>\n<style id=\"wpcoderpro-inline-1\">.formula-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>LTV Formula<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n\\[ \\text{LTV} = \\frac{\\text{First mortgage balance}}{\\text{Property value}} \\times 100\\% \\\\ \\text{CLTV} = \\frac{\\text{First mortgage} + \\text{Second mortgage \/ HELOC}}{\\text{Property value}} \\times 100\\% \\\\ \\text{Home equity} = \\frac{\\text{Property value} - \\text{Total mortgage debt}}{\\text{Property value}} \\times 100\\% \\\\ \\text{Max first mortgage} = \\text{Property value} \\times \\frac{\\text{Target LTV}}{100} - \\text{Second mortgage} \\]\n<\/div>\r\n\t<\/figure>\r\n\t<\/p>\n<p><strong>Where:<\/strong><\/p>\n<ul>\n<li>\\(\\text{LTV}\\) \u2014 loan-to-value ratio of the first mortgage alone (%);<\/li>\n<li>\\(\\text{CLTV}\\) \u2014 combined loan-to-value, counting every lien on the property (%);<\/li>\n<li>Property value \u2014 the lower of the appraised value and the purchase price, since that is the basis lenders use.<\/li>\n<\/ul>\n<p>The first three formulas describe your current position; the last one works backwards from a target LTV to find the largest first mortgage (and the cash needed) that fits it.<\/p>\n<p>\r\n<\/section>\n<style id=\"wpcoderpro-inline-459\">.calculation-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section id=\"calculation\" class=\"calculation-box\" aria-labelledby=\"calculation-title\">\r\n\t<div id=\"calculation-title\" class=\"not-prose font-display\"><span class=\"icon icon-unordered-list\" aria-hidden=\"true\"><\/span><h2>LTV \u2013 Calculation Example<\/h2><\/div>\r\n\r\n<\/p>\n<p><strong>Example:<\/strong> a home appraised at $400,000 carries a first mortgage of $320,000 and no second mortgage or HELOC. The purchase price field is left at 0, so the appraised value is the basis.<\/p>\n<p>\\[ \\text{LTV} = \\frac{320{,}000}{400{,}000} \\times 100\\% = 80.0\\% \\\\ \\text{CLTV} = \\frac{320{,}000 + 0}{400{,}000} \\times 100\\% = 80.0\\% \\\\ \\text{Home equity} = 100\\% - 80.0\\% = 20.0\\% \\; (\\$80{,}000) \\]<\/p>\n<p><strong>Result:<\/strong> LTV = 80.0%, CLTV = 80.0%, home equity = 20.0% ($80,000), total mortgage debt = $320,000, and the cash position at close is $80,000. At exactly 80% LTV the borrower can request private mortgage insurance (PMI) removal on a conventional loan.<\/p>\n<p>\n\r\n<\/section>\n<h2>How to Use the LTV Calculator<\/h2>\n<ol>\n<li>Pick the <strong>Mode<\/strong>: <em>Check my LTV<\/em> shows where you stand today; <em>Plan for a target LTV<\/em> works backwards to the loan size and cash you need.<\/li>\n<li>Enter the <strong>Appraised value<\/strong> (or your best current market estimate). Lenders use the lower of this and the purchase price, which you can enter in <strong>Purchase price<\/strong> \u2014 leave 0 to skip it.<\/li>\n<li>Under <strong>Loans<\/strong>, choose whether the loan is given as a <strong>Loan amount<\/strong> or a <strong>Down payment<\/strong>. Then fill in the <strong>First mortgage amount<\/strong> (or the <strong>Down payment<\/strong>, as a % of price or a $ amount) and any <strong>Second mortgage \/ HELOC<\/strong> balance \u2014 enter 0 if none.<\/li>\n<li>In planning mode, set a <strong>Target LTV<\/strong> (80%, 90%, 97%, 96.5%, 100%, or <strong>Custom<\/strong>) and check <strong>Count second mortgage in the target<\/strong> if the cap applies to the CLTV of all loans combined rather than the first mortgage alone.<\/li>\n<li>Read the results: <em>LTV \u2014 first mortgage<\/em>, <em>CLTV \u2014 all mortgages<\/em>, <em>Home equity<\/em>, and \u2014 in planning mode \u2014 the <em>Maximum first mortgage at the target<\/em> and <em>Required down payment<\/em>, plus a table of typical loan program maximums.<\/li>\n<\/ol>\n<h2>What the Loan-to-Value Ratio Means<\/h2>\n<p>LTV is the single most important number a mortgage lender looks at after your credit score and debt-to-income ratio. It measures how much of the property's value is financed: an 80% LTV means the loans cover four fifths of the value and you own the remaining fifth as equity. From the lender's perspective, a lower LTV means a safer loan \u2014 if you default, there is more cushion between the debt and what the property can be sold for, so low-LTV borrowers get better rates and easier approvals.<\/p>\n<p>The most famous threshold is 80%. On conventional loans, any LTV above 80% requires private mortgage insurance, which typically costs 0.3\u20131.5% of the loan balance per year. Once your LTV falls to 80% you may request PMI removal, and at 78% of the original value the servicer must cancel it automatically under the Homeowners Protection Act. This is also the standard cap for cash-out refinancing, so the 80% line matters for both purchases and refinances.<\/p>\n<p>CLTV \u2014 combined loan-to-value \u2014 adds up every lien: a first mortgage of 75% plus a HELOC of 10% gives an 85% CLTV even though the first-lien LTV is only 75%. Home equity lenders price against CLTV, and most cap combined financing at about 85%. Note that program maximums work differently: conventional purchases go to 97% LTV, FHA to 96.5%, while VA and USDA loans allow 100% for eligible borrowers. The calculator's program table shows how your numbers fit each of these caps.<\/p>\n<p>Home equity is the mirror image of LTV: a 75% LTV means 25% equity. Lenders love to see it grow over time \u2014 through amortization, extra principal payments, or appreciation \u2014 because rising equity unlocks better refinance rates, HELOC eligibility, and the ability to drop PMI. See our <a href=\"https:\/\/wpcalc.com\/en\/finance\/home-equity-calculator\/\">home equity calculator<\/a> for a deeper look at that side of the balance sheet.<\/p>\n<h2>LTV Thresholds at a Glance<\/h2>\n<table>\n<thead>\n<tr>\n<th>LTV<\/th>\n<th>What it means<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>100%+<\/td>\n<td>Negative or zero equity \u2014 only VA\/USDA purchase loans reach 100%<\/td>\n<\/tr>\n<tr>\n<td>96.5\u201397%<\/td>\n<td>Maximum for FHA (96.5%) and conventional (97%) purchases<\/td>\n<\/tr>\n<tr>\n<td>80.01\u201395%<\/td>\n<td>PMI required on conventional loans; request removal at 80%<\/td>\n<\/tr>\n<tr>\n<td>80%<\/td>\n<td>No-PMI zone for conventional loans; standard cash-out refinance cap<\/td>\n<\/tr>\n<tr>\n<td>78%<\/td>\n<td>PMI terminates automatically (of original value)<\/td>\n<\/tr>\n<tr>\n<td>85% CLTV<\/td>\n<td>Typical maximum combined financing for home equity loans and HELOCs<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>Assumptions and Practical Tips<\/h2>\n<ul>\n<li><strong>The lower value wins.<\/strong> If the purchase price is higher than the appraisal, the calculator uses the appraisal \u2014 exactly what lenders do. A short appraisal raises your effective LTV and can kill a deal, so be conservative with your value estimate.<\/li>\n<li><strong>Use current balances, not the original loan.<\/strong> For an existing home, enter today's principal balance (from your latest statement), not the amount you originally borrowed; amortization and extra payments lower your true LTV.<\/li>\n<li><strong>Closing costs are not counted.<\/strong> The cash figure is the down payment or equity gap only; add closing costs separately with our <a href=\"https:\/\/wpcalc.com\/en\/finance\/closing-cost-calculator\/\">closing cost calculator<\/a>.<\/li>\n<li><strong>LTV is one of three gates.<\/strong> Even a 60% LTV will not close if your <a href=\"https:\/\/wpcalc.com\/en\/finance\/debt-to-income-ratio-calculator\/\">debt-to-income ratio<\/a> or credit score is out of range. Check those before assuming a loan size is safe.<\/li>\n<li><strong>Program rules change.<\/strong> The program table shows typical maximums, not guarantees \u2014 lenders apply their own overlays, and government-backed programs such as the <a href=\"https:\/\/wpcalc.com\/en\/finance\/fha-loan-calculator-payment-with-mip\/\">FHA<\/a> and <a href=\"https:\/\/wpcalc.com\/en\/finance\/va-loan-calculator-payment-with-funding-fee\/\">VA<\/a> loans carry their own insurance or funding-fee structures that offset a high LTV.<\/li>\n<li><strong>Planning mode ignores rate effects.<\/strong> It computes the loan that fits a target LTV, but a larger down payment may also improve your quoted rate \u2014 the real savings can exceed the PMI line alone.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Quickly compute your loan-to-value (LTV) ratio, combined CLTV, and home equity from your mortgage balances and property value \u2014 or plan the loan amount and down payment needed to hit a target LTV. Enter an appraised value, purchase price, and up to two mortgages.<\/p>\n","protected":false},"author":3168,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[30],"class_list":["post-67413","post","type-post","status-publish","format-standard","hentry","category-finance","tag-mortgage"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/67413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/3168"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=67413"}],"version-history":[{"count":1,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/67413\/revisions"}],"predecessor-version":[{"id":67414,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/67413\/revisions\/67414"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=67413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=67413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=67413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}