Loan-to-Value (LTV) Calculator
Find your loan-to-value ratio and how it affects mortgage rates and insurance.
About the Loan-to-Value (LTV) Calculator
Enter what you owe on the mortgage and what the property is worth today, plus any second mortgage or home equity line. The calculator shows your loan-to-value (LTV), your combined LTV and your equity.
Lenders price mortgages by LTV bands: a lower LTV usually means a lower rate. In the US, conventional loans above 80% LTV usually need private mortgage insurance (PMI).
The formula
LTV = loan ÷ property value × 100
- loan
- the outstanding balance of the first mortgage
- property value
- appraised value, or the purchase price for a new purchase
- Combined LTV
- (all loans secured on the property) ÷ value
Worked example
Owe 280,000 on a home worth 350,000, plus a 20,000 home equity line
- LTV = 280,000 ÷ 350,000 = 80%
- Combined LTV = 300,000 ÷ 350,000 = 85.71%
- Equity: 14.29% of the value, 50,000
Things to keep in mind
- Lenders use their own appraisal, which can differ from your estimate.
- Thresholds vary: FHA loans charge mortgage insurance whatever the LTV, and UK lenders price in 5% or 10% bands.
Questions people ask
What LTV avoids mortgage insurance?
80% or less on most conventional loans.
Does paying down my loan lower LTV?
Yes, and so does a rise in the home's value.
What deposit gives 80% LTV?
20% of the price. A 10% deposit means 90% LTV.