Most lenders want an LTV of 80% or less to avoid private mortgage insurance. For a home equity loan or HELOC, combined LTV limits are typically 80–90%.
How to use the LTV Calculator – Loan to Value
- Loan amount
- Second mortgage / HELOC balance
- Property value
- Lender’s maximum combined LTV
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the mortgage balance, any second loans and the appraised value.
Tips
- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.
Common mistakes to avoid
- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.
Inputs explained
| Field | What to enter |
|---|---|
| Loan amount | Amount in your currency |
| Second mortgage / HELOC balance | Amount in your currency |
| Property value | Amount in your currency |
| Lender’s maximum combined LTV | In % |
What each result means
- Loan to value ratio (LTV) = [Loan amount]÷[Property value]×100
- Combined LTV = ([Loan amount] + [Second mortgage ÷ HELOC balance])÷[Property value]×100
- Home equity = [Property value] – [Loan amount] – [Second mortgage ÷ HELOC balance]
- Additional borrowing available = [Lender’s maximum combined LTV]([Property value]×[Lender’s maximum combined LTV]÷100 – [Loan amount] – [Second mortgage ÷ HELOC balance], 0)
Example values
How the main result changes when Loan amount changes and everything else stays at the example values above:
| Loan amount | Loan to value ratio (LTV) (%) |
|---|---|
| 160,000 | 40 |
| 240,000 | 60 |
| 320,000 | 80 |
| 400,000 | 100 |
| 480,000 | 120 |
| 640,000 | 160 |
Formula
LTV = loan amount ÷ property value × 100CLTV = (first mortgage + second loans) ÷ property value × 100Equity = value − total loansWorked example
Inputs — Loan amount: $320,000; Second mortgage / HELOC balance: $0; Property value: $400,000; Lender's maximum combined LTV: 85 %.
Results — Loan to value ratio (LTV) = 80 %; Combined LTV = 80 %; Home equity = $80,000.00; Additional borrowing available = $20,000.00; PMI = Not required.
Frequently asked questions
What is a good LTV?
80% or lower avoids PMI and gets better rates.
How do I lower my LTV?
Make extra payments, wait for the home to appreciate or put more down.
What is CLTV?
Combined LTV including all loans secured by the property.
What formula does the LTV Calculator – Loan to Value use?
LTV = loan amount ÷ property value × 100.