United States · USD

Loan-to-value calculator.

Calculate your mortgage LTV, combined LTV and home equity, then test a proposed loan or target ratio.

Current property and loans

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Use a realistic current market value or appraisal
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Used for HCLTV; enter $0 if there is no HELOC

Proposed mortgage scenario

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LTV thresholds are planning markers, not universal approval rules. Requirements vary by occupancy, loan purpose, program, credit profile, property type and lender.

Planning estimate only—not an appraisal, credit decision or loan approval. A lender may use a qualifying appraisal and program-specific rules. CLTV and HCLTV definitions can depend on how subordinate financing is structured.

U.S. mortgage equity guide

Calculate your mortgage loan-to-value ratio

Loan-to-value compares a mortgage balance with the value of the property securing it. Lenders use LTV alongside credit, income, reserves, property type and loan purpose when assessing mortgage risk. This calculator shows current and proposed LTV as well as combined ratios for homes with subordinate financing.

How to calculate LTV

Divide the first mortgage balance by the property value and multiply by 100. A $320,000 first mortgage secured by a $500,000 home has a 64% LTV. Home equity is the property value minus all outstanding loans secured by the home.

LTV can change when the loan balance is paid down or when the property's value changes. An online estimate is useful for planning, but a lender may require an appraisal or another accepted valuation.

LTV

LTV normally compares the first mortgage with property value. It does not include a second mortgage or HELOC.

Combined LTV (CLTV)

CLTV combines the first mortgage with outstanding subordinate mortgage balances, then divides the total by property value.

Home-equity combined LTV

HCLTV commonly uses the full HELOC credit limit rather than only the amount currently drawn, together with other secured loans.

Target LTV

Target calculations show the maximum first-mortgage balance and principal reduction associated with a chosen planning ratio.

Why LTV matters for a mortgage or refinance

LTV may affect eligible loan programs, pricing, mortgage-insurance requirements and cash-out limits. A lower ratio generally represents more borrower equity, but no single threshold guarantees approval or a particular rate. Requirements differ for purchases, rate-and-term refinances and cash-out transactions.

Use the proposed scenario to estimate the ratio after a refinance, then use the mortgage refinance calculator to compare payments, closing costs and break-even periods.

Loan-to-value questions

What is a good LTV ratio?

There is no universal best ratio. Lower LTV usually means more equity, while actual program limits and pricing depend on the transaction and borrower profile.

Is LTV based on purchase price or appraised value?

For a purchase, underwriting often uses the lower of the purchase price or appraised value. For an existing home, the lender may use a qualifying current valuation.

What is the difference between LTV and CLTV?

LTV focuses on the first mortgage. CLTV includes other secured loans such as a second mortgage or the outstanding balance of a HELOC.

Can paying down my mortgage reduce LTV?

Yes. Reducing the balance lowers LTV if the property value remains the same. A valuation change can also raise or lower the ratio.

Does an 80% LTV automatically remove mortgage insurance?

No. Cancellation rules depend on the loan, payment history, property value, investor requirements and applicable law. Contact the servicer for the requirements governing a specific mortgage.