LTV (Loan-to-Value) Calculator
Calculate loan-to-value ratio for mortgages and refinancing. Essential metric for lending decisions and PMI requirements.
Enter values and calculate.
How it works
LTV = (Loan Amount ÷ Property Value) × 100. Lower ratios indicate less risk and often better loan terms.
Example
$240,000 loan ÷ $300,000 value × 100 = 80% LTV.
FAQ
What is a good LTV ratio?
80% or lower is ideal to avoid PMI. Most conventional loans allow up to 95% LTV, while jumbo loans typically require 80% LTV or lower.
How is LTV calculated?
LTV = (Loan Amount ÷ Property Value) × 100. For example, a $240,000 loan on a $300,000 property = 80% LTV.
When do I need to pay PMI?
Private Mortgage Insurance (PMI) is typically required on conventional loans when LTV exceeds 80%.
Can LTV affect my interest rate?
Yes, higher LTV ratios often result in higher interest rates as they represent more risk to lenders.