Loan to Value Calculator
Calculate your loan-to-value ratio to understand property equity and borrowing capacity.
Calculate LTV Ratio
About Loan-to-Value (LTV) Ratio
Loan-to-Value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. It's a key factor in mortgage approval and interest rates.
LTV Formula
LTV = (Loan Amount / Property Value) × 100
LTV Impact on Loans
- Below 80% LTV: Best rates, no PMI required
- 80-90% LTV: Good rates, may require PMI
- 90-95% LTV: Higher rates, PMI required
- Above 95% LTV: Limited options, highest rates
Why LTV Matters
- Determines loan approval likelihood
- Affects interest rates offered
- Indicates mortgage insurance requirements
- Shows property equity position
- Influences refinancing options
Improving Your LTV
- Larger Down Payment: Reduces loan amount needed
- Pay Down Principal: Reduces existing loan balance
- Property Improvements: Increases property value
- Wait for Appreciation: Property value increases over time
Combined LTV (CLTV)
- Includes all loans against the property
- First mortgage + second mortgage + HELOCs
- Used for refinancing and home equity loans
- CLTV = (Total Loans / Property Value) × 100