🏠 Loan-to-Value (LTV) Calculator

1. Enter the appraised value or purchase price of the property (whichever is lower).
2. Enter either the loan amount you wish to borrow or your planned down payment amount.
3. Click the Calculate button.
4. Review the LTV ratio, down payment percentage, and PMI status.
5. If PMI applies, note the estimated annual and monthly PMI cost for budgeting.

What is a good Loan-to-Value ratio?

An LTV of 80% or lower is generally considered good because it allows you to avoid private mortgage insurance (PMI) on a conventional loan and typically qualifies you for the best interest rates. An LTV between 80% and 90% is acceptable but will require PMI. Anything above 90% means higher borrowing costs and more difficulty qualifying.

How is LTV different from combined LTV (CLTV)?

Standard LTV considers only the primary (first) mortgage relative to the property value. Combined LTV (CLTV) includes all liens on the property — for example, if you have a first mortgage of $240,000 and a home equity line of credit (HELOC) of $60,000 on a $300,000 home, your CLTV is 100% even though your primary-loan LTV is 80%. Lenders evaluate both numbers when you apply for additional financing.

At what LTV can I cancel PMI?

Under the federal Homeowners Protection Act (HPA), your lender must automatically terminate PMI on a conventional loan when your LTV reaches 78% based on the original amortization schedule — provided your payments are current. You can also request PMI cancellation at 80% LTV by submitting evidence that your home value has not declined. FHA loans have separate MIP rules that generally require refinancing to remove.

Does a higher appraised value lower my LTV?

Yes. Since LTV = Loan Amount / Property Value, a higher appraised value reduces the ratio. However, lenders typically use the lower of the appraised value or the purchase price to calculate LTV at the time of purchase. If you are refinancing, a new appraisal that comes in higher can significantly improve your LTV and help you remove PMI or qualify for better terms.

Can I get a mortgage with a 97% LTV?

Yes, some conventional loan programs (such as Fannie Mae HomeReady and Freddie Mac Home Possible) allow LTVs up to 97% for qualified first-time or low-income buyers. FHA loans allow up to 96.5%. VA and USDA loans can go up to 100% for eligible borrowers. However, higher LTVs mean higher monthly costs due to PMI or mortgage insurance premiums, and qualification requirements are stricter.

Is this LTV calculator accurate for refinancing?

The LTV formula itself is identical whether you are buying or refinancing. For refinancing, enter your current remaining loan balance as the loan amount and the current appraised value of your home as the property value. Most conventional refinance programs require an LTV of 80% or lower to avoid PMI. Some streamline refinance programs (FHA Streamline, VA IRRRL) may waive the appraisal requirement.

What happens if my home value drops after I buy?

If your property value declines, your LTV increases even though your loan balance is shrinking. This is known as being "underwater" or "upside down" on your mortgage. If your LTV exceeds 100%, you owe more than the home is worth, which makes refinancing or selling difficult. Making extra payments toward principal can help rebuild equity faster.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

Aim for an LTV of 80% or lower to avoid PMI entirely and unlock the best interest rates. If you cannot reach 80% right away, remember that PMI is not permanent — once your LTV drops to 78% through amortization or home price appreciation, the lender must automatically cancel PMI on conventional loans under the Homeowners Protection Act. You can also request PMI removal at 80% LTV with evidence of the current home value, such as a new appraisal. Making extra principal payments or choosing a biweekly mortgage payment plan accelerates equity buildup and gets you to 80% faster. If your LTV is above 95%, consider an FHA loan, which allows up to 96.5% LTV, but factor in the cost of FHA mortgage insurance premiums (MIP), which typically last for the life of the loan. Another strategy is to wait and save a larger down payment, or explore piggyback loans (an 80/10/10 structure) where a second mortgage covers part of the down payment, keeping the primary loan at 80% LTV. Always get quotes from multiple lenders — PMI rates and interest rate adjustments for high-LTV borrowers vary significantly between lenders, and even a 0.25% rate difference can cost or save thousands over the life of the loan. If property values in your area are rising quickly, your LTV improves automatically over time, which is a good reason to monitor your equity and refinance when LTV drops below 80%.