LTV Calculator
Calculate Loan-to-Value ratio and determine mortgage risk
Calculate Loan-to-Value Ratio
Total market value of the property
Upfront payment from your own funds
Mortgage loan amount from lender
Loan-to-Value ratio percentage
LTV Calculation Results
Private Mortgage Insurance (PMI)
PMI is required for conventional loans with LTV above 80%. Your LTV of 90.00% requires PMI.
Eligible Loan Types
LTV Formula
LTV = (Loan Amount ÷ Purchase Price) × 100%
Purchase Price = Down Payment + Loan Amount
CLTV = (Total All Loans ÷ Property Value) × 100%
Example Calculation
Sample Property Purchase
Purchase Price: $200,000
Down Payment: $20,000 (10%)
Loan Amount: $180,000
LTV Calculation
LTV = $180,000 ÷ $200,000 = 0.90
LTV = 0.90 × 100% = 90%
PMI Required: Yes (LTV > 80%)
LTV Guidelines
≤ 80% LTV
• No PMI required
• Best interest rates
• Lower risk
80-90% LTV
• PMI required
• Good rates available
• Moderate risk
90-95% LTV
• Higher PMI costs
• Limited loan options
• Higher risk
> 95% LTV
• Very limited options
• Highest costs
• Very high risk
Loan Types by LTV
Conventional
Up to 97% LTV, PMI required > 80%
FHA Loan
Up to 96.5% LTV, MIP required
VA Loan
Up to 100% LTV, no down payment
USDA Loan
Up to 100% LTV, rural areas
Understanding Loan-to-Value Ratio
What is LTV?
Loan-to-Value (LTV) ratio is a financial metric that compares the loan amount to the property's value. It's expressed as a percentage and helps lenders assess the risk of a mortgage loan.
Why LTV Matters
- •Risk Assessment: Higher LTV means higher risk for lenders
- •Interest Rates: Lower LTV often qualifies for better rates
- •PMI Requirement: LTV above 80% typically requires PMI
- •Loan Approval: Affects likelihood of loan approval
CLTV vs LTV
LTV: Primary mortgage only
CLTV: All loans secured by property
CLTV = (First Mortgage + Second Mortgage + HELOC + Other Loans) ÷ Property Value
Improving Your LTV
- Larger down payment: Reduces loan amount needed
- Lower purchase price: Negotiate better deal
- Pay down existing loans: Improves CLTV
- Property improvements: Increase property value
Tip: Aim for 80% LTV or lower to avoid PMI and qualify for the best mortgage terms available.