Loan-to-Value (LTV) Calculator
Calculate your primary Loan-to-Value (LTV) ratio, Combined Loan-to-Value (CLTV) ratio, equity percentage, and conventional Private Mortgage Insurance (PMI) status.
Loan Amount & Appraised Property Value
Loan-to-Value (LTV) & Combined LTV Formula
Primary LTV (%) = (Primary Loan Amount ÷ Property Value) × 100 | Combined LTV (%) = [(Primary Loan + Second Loan) ÷ Property Value] × 100- Equity Percentage (%) = 100% − Combined LTV (%).
- Equity Dollar Amount = Property Value − Total Loan Amount.
- Conventional PMI Threshold: Primary LTV > 80% typically requires Private Mortgage Insurance.
Step-by-Step Worked Example
Calculation Steps:
- Primary LTV = ($340,000 ÷ $425,000) × 100 = 80.00%
- Property Equity = $425,000 − $340,000 = $85,000 (20.00%)
- PMI Check: 80.00% LTV meets the 80% threshold (no standard conventional PMI required)
How to Use This Calculator
- 1Enter your primary mortgage loan balance or proposed loan amount.
- 2Enter the appraised property value or purchase price.
- 3Optionally enter any second mortgage or HELOC balance to view Combined LTV (CLTV).
Assumptions & Limitations
- When buying a home, lenders use the lesser of the purchase price or the appraised value as the denominator for LTV.
Frequently Asked Questions
Why is 80% LTV such an important milestone in mortgage lending?
On conventional mortgages backed by Fannie Mae and Freddie Mac, borrowers with an LTV above 80% must pay Private Mortgage Insurance (PMI). Once your LTV reaches 80% through principal paydown or appreciation, you can request PMI removal.
What is Combined Loan-to-Value (CLTV)?
CLTV includes all secured loans on the property—your first mortgage plus any second mortgage, home equity loan, or drawn HELOC balance—divided by the property value.
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