Loan-to-Value (LTV) Calculator
Use this calculator to find your loan-to-value ratio, see your combined loan-to-value ratio if you have a second mortgage or HELOC, and understand what the number means for PMI, pricing, and loan options.
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What you’ll learn
- What LTV means in plain English
- How to calculate LTV and CLTV
- Why LTV matters for PMI, rates, and loan choices
- How lenders think about 80%, 95%, and 97% LTV levels
- What to do next if your LTV is higher than you want
Table of contents
Calculate your LTV
Enter the property value and your loan balances. If you only have one mortgage, leave the second-lien field at 0.
Your results will show here.
This is a planning tool, not an underwriting approval. Lenders may use appraised value, automated valuation models, program rules, reserve requirements, and credit factors that this tool does not know.
What is loan-to-value (LTV) in plain English?
Loan-to-value is just the percentage of a home’s value that is being financed with debt.
If you buy a $400,000 house with a $320,000 first mortgage, your LTV is 80%. That means the lender is financing 80% of the property value, and your starting equity or down payment is the other 20%.
The CFPB defines LTV as a measure comparing the amount you are financing with the appraised value of the property. The CFPB also says a higher down payment lowers your LTV, while a higher LTV can affect whether PMI is required and what rate you are offered.
How to calculate LTV
The formula is simple:
LTV = first mortgage amount ÷ property value × 100
If you also have a second mortgage or HELOC, the combined version matters too:
CLTV = (first mortgage + second mortgage + other liens) ÷ property value × 100
| Scenario | Formula | Result |
|---|---|---|
| $300,000 loan on a $375,000 home | 300,000 ÷ 375,000 × 100 | 80% LTV |
| $350,000 first mortgage + $20,000 HELOC on a $400,000 home | (350,000 + 20,000) ÷ 400,000 × 100 | 92.5% CLTV |
| $291,000 FHA-style loan on a $301,554 value example | 291,000 ÷ 301,554 × 100 | About 96.5% LTV |
Fannie Mae’s consumer tool uses the same basic idea and also asks for other liens because combined leverage matters, not just the first mortgage.
Why LTV matters
1) PMI and mortgage insurance
The CFPB says lenders may use LTV to decide if private mortgage insurance is required, and the CFPB says lenders generally require consumers to purchase PMI when the down payment is less than 20% of the sales price or appraised value on many conventional loans.
That is why PMI and PMI removal are so tied to LTV.
2) Interest rate and loan pricing
The CFPB says higher-risk borrowers with higher LTVs will usually be offered a higher interest rate. Lower LTV can put you in a better pricing bucket even when the home price stays the same.
3) Loan eligibility
Program rules matter. Freddie Mac’s current conforming purchase matrix shows maximum LTV ratios like 95% for a 1-unit primary residence, 90% for many second homes, and 85% for a 1-unit investment property. Fannie Mae also still offers certain 97% LTV options for eligible 1-unit principal-residence transactions, including standard purchase transactions if at least one borrower is a first-time home buyer.
4) Equity
LTV is basically the flip side of your equity. If your LTV is 80%, your starting equity is about 20% before fees, market moves, and any financing twists. That is why an equity calculator naturally belongs next in this cluster.
Common LTV ranges and what they usually mean
| LTV range | What it usually means |
|---|---|
| 80% or lower | A strong conventional zone. Many buyers here can avoid PMI on a new conventional loan, and many existing conventional borrowers can request PMI cancellation once they hit 80% of original value if they meet the rules. |
| 80.01% to 90% | Often workable, but more likely to involve PMI or less favorable pricing depending on the loan type, credit, and reserves. |
| 90.01% to 95% | Still common for primary-residence purchases, but you are leaning more on low-down-payment programs and insurer/lender rules. Freddie Mac’s current purchase matrix still allows up to 95% LTV for some conforming 1-unit primary-residence loans. |
| 95.01% to 97% | This is a special-program area, not a casual default setting. Fannie Mae says certain 97% LTV options remain available for eligible principal-residence transactions, but with tighter rules. |
| Above 97% | Usually means you need a specialized structure, a different loan program, or you should revisit the budget before moving forward. |
Real examples
Example 1: Conventional buyer trying to avoid PMI
You are buying a $450,000 home and putting $90,000 down.
- Loan amount: $360,000
- LTV: 80%
- Takeaway: this is the classic conventional threshold many buyers target to avoid PMI on a new loan.
Example 2: Low-down-payment first-time buyer
You are buying a $350,000 home with 5% down.
- Down payment: $17,500
- Loan amount: $332,500
- LTV: 95%
- Takeaway: still very normal, but you are more likely to pay PMI and to feel rate/price pressure compared with a lower-LTV file.
Example 3: Piggyback structure
You buy a $500,000 home with an 80/10/10 structure.
- First mortgage: $400,000
- Second mortgage: $50,000
- Cash down: $50,000
- First-lien LTV: 80%
- Combined LTV: 90%
- Takeaway: this is why CLTV matters, not just first-lien LTV.
Mistakes to avoid
Thinking LTV is the same as down payment
They are related, but not identical in every situation. Financing tweaks, refinances, declining values, and second liens can change the picture.
Using the wrong property value
Lenders may rely on an appraisal or another approved valuation method, not the number you hope the house is worth.
Ignoring CLTV
If you have a HELOC, second mortgage, or another lien, combined leverage matters. That can affect approvals even if the first mortgage alone looks fine.
Focusing only on approval, not comfort
You can technically fit into a loan box and still hate the payment. Pair this tool with your mortgage affordability calculation and your cash-to-close math before you make a big decision.
Best next steps
- Use the Down Payment Calculator to test how different down-payment levels change your LTV.
- Use the PMI Calculator if you will likely land above 80% on a conventional loan.
- Use the Closing Costs Calculator and Cash to Close Calculator so you do not confuse “approved” with “actually affordable.”
- Use the Combined Loan-to-Value (CLTV) Calculator if you are planning to use a HELOC or piggyback mortgage.
- Use the Home Equity Calculator if you want to see your equity as the mirror image of your LTV.
Helpful videos you can watch right here
LTV (Loan-to-Value Ratios) Explained
A simple overview of how lenders use LTV and why the percentage matters when you are shopping for a mortgage.
Private Mortgage Insurance (PMI) Explained
Helpful once you understand your LTV and want to see how that number can turn into a real monthly cost.
FAQ
What is a good LTV ratio for a mortgage?
Lower is generally better. In many conventional-loan situations, 80% or lower is a major milestone because PMI may not be required on a new loan and federal PMI-removal rules often turn on that 80% threshold for existing loans. But “good” also depends on the loan program, your credit, reserves, and whether this is a primary residence, second home, or investment property.
What is the difference between LTV and CLTV?
LTV usually looks at the first mortgage compared with the property value. CLTV adds second mortgages, HELOCs, and other liens too. Fannie Mae’s consumer calculator explicitly asks for these additional liens because total leverage matters.
Does a higher LTV affect my mortgage rate?
Usually yes. The CFPB says higher-risk borrowers with higher LTV will usually be offered a higher interest rate. It does not mean every lender will price the same way, but higher LTV often creates more cost.
Can I still buy with 95% or 97% LTV?
Sometimes, yes. Freddie Mac’s current matrix shows 95% maximum LTV for some conforming 1-unit primary-residence purchases, and Fannie Mae still offers certain 97% LTV options for eligible principal-residence transactions. Those are program-driven situations, not a blanket guarantee for every borrower.
Is LTV based on appraised value or purchase price?
It depends on the situation and the lender’s rules. The CFPB describes LTV as comparing the amount financed with the appraised value of the property. In practice, lenders may use the value allowed by the program and underwriting rules, which can differ from the number you had in mind.
Vetted external resources
This calculator is for education and planning only. It is not legal, tax, lending, or underwriting advice. Real mortgage approvals can depend on appraisal results, credit, reserves, occupancy, debt-to-income ratio, property type, mortgage insurance rules, and lender overlays.
How to Use This Calculator
Enter your current loan balance and your home’s current market value. The calculator shows your LTV ratio and tells you whether you’re in PMI territory, approaching cancellation eligibility, or building significant equity.
Assumptions and Limitations
- Assumes a fixed interest rate for the full loan term. Adjustable-rate mortgages (ARMs) work differently.
- Property taxes and homeowner’s insurance are estimated — your actual escrow amount will come from your lender.
- HOA fees are not included. Add those separately when comparing monthly payment to your budget.
- PMI costs assume standard lender-placed PMI on conventional loans. FHA MIP has different rates and different cancellation rules.
Disclaimer: This calculator is for educational purposes only and does not constitute financial or mortgage advice. Consult a licensed mortgage professional for figures specific to your situation.
Sources
- Consumer Financial Protection Bureau (CFPB)
- FDIC — Consumer Resource Center
- Federal Trade Commission — Money
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