Loan-to-Value (LTV) Calculator - LTV, CLTV, Equity and PMI Threshold
Loan-to-Value Calculator
How much of your home’s value is borrowed?
LTV and CLTV
LTV compares your main mortgage with the property value. CLTV adds any second mortgage or home equity line to the loan side.
The 80 and 78 Percent Marks
See how much principal you must pay to reach 80 percent, where you can ask to drop mortgage insurance, and 78 percent, where it usually ends automatically.
Your Equity
The part of the value you own, as an amount and as a percentage.
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Why Lenders Care About LTV
Loan-to-value is the loan balance divided by the property’s value. The lower it is, the more of the home you own and the less risk a lender takes, so a lower LTV usually means a better interest rate and fewer fees. Many conventional loans in the United States require private mortgage insurance when you borrow more than 80 percent of the value.
LTV changes over time: it falls as you pay down the balance and as the property’s value rises, and it climbs if prices fall. CLTV matters when you also borrow against the home, because lenders add every loan secured by the property. The value should be a recent appraisal or a realistic market price, since an inflated value gives an LTV that looks lower than it really is.
Key Takeaways
- 80 percent: The common threshold for avoiding or removing mortgage insurance on a conventional loan.
- 78 percent: In the United States, mortgage insurance on many loans must end automatically when the scheduled balance reaches 78 percent of the original value.
- Related calculators: See also the Mortgage Calculator, the Down Payment Calculator and the Home Equity Loan Calculator.