LTV Loan to Value Calculator
Calculate loan-to-value ratio and determine missing values. Analyze LTV impact on mortgage rates and PMI requirements.
How it works
LTV = (Loan Amount ÷ Purchase Price) × 100. Higher LTV means less down payment but potentially higher rates and mortgage insurance requirements.
Example
$320,000 loan ÷ $400,000 purchase price = 80% LTV. This avoids PMI and qualifies for standard rates.
FAQ
What's a good LTV ratio?
80% or below avoids PMI on conventional loans and gets better rates. Higher LTV is acceptable but costs more through insurance or higher rates.
How does LTV affect mortgage rates?
Lower LTV typically means better rates. Lenders view lower LTV as less risky since you have more equity in the property.
What's the maximum LTV for different loan types?
Conventional: 97%, FHA: 96.5%, VA: 100%, USDA: 100%. Investment properties typically max at 75-80% LTV.
Can I remove PMI by reaching 80% LTV?
Yes, on conventional loans you can request PMI removal at 80% LTV through payments or appreciation. It automatically removes at 78% LTV.
How is LTV calculated with multiple loans?
Combined LTV (CLTV) includes all loans against the property. First mortgage + second mortgage + HELOC = total debt for CLTV calculation.