Loan-to-Value (LTV) Calculator

What is This Calculator For?

This calculator helps you understand your loan-to-value ratio, a crucial metric used by lenders to assess mortgage risk. A lower LTV ratio typically results in better loan terms and increased chances of approval.

When to Use This Calculator

  • Before applying for a mortgage
  • When considering refinancing
  • To determine PMI requirements
  • When planning your down payment

What You'll Learn

  • Your current LTV ratio
  • Your home equity position
  • If you meet typical lending requirements
  • Impact of second mortgages on LTV

What is LTV Ratio?

The Loan-to-Value (LTV) ratio is a lending risk assessment metric that lenders examine before approving a mortgage. A higher LTV ratio suggests higher risk for the lender, while a lower ratio typically results in better loan terms for the borrower.

Why LTV Matters

  • Determines loan approval chances
  • Affects interest rates
  • Influences PMI requirements
  • Impacts refinancing options

Common LTV Requirements

  • Conventional: 80% or less ideal
  • FHA: Up to 96.5%
  • VA: Up to 100%
  • Refinance: Varies by type

How to Use This Calculator

1

Enter Property Value

Input the current market value or purchase price of your property

2

Input Loan Amount

Enter your primary mortgage amount (the loan you're applying for or currently have)

3

Add Second Mortgage (if applicable)

Include any second mortgages or home equity loans to calculate combined LTV