Loan to Value Ratio Calculator: Assess Your Mortgage Risk Instantly
The Loan-to-Value (LTV) calculator divides your intended loan by the property’s value, then multiplies by 100 to reveal the risk-critical percentage; U.S. lenders classify ≤80 % as “low-risk” (CFPB, 2022).
Loan to Value Ratio Calculator
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How to use the tool
1. Enter loan amount. Example: $175,000 or $340,000.
2. Enter collateral value. Example: $220,000 or $425,000.
3. Read your LTV ratio. The calculator instantly shows the percentage and explains what it means for approval, PMI, and rate.
Loan $175,000 ÷ Value $220,000 × 100 = < b>79.55 % (no PMI, easier approval).
Example calculation B
Loan $340,000 ÷ Value $425,000 × 100 = < b>80.00 % (borderline; some lenders still waive PMI).
Quick-Facts
Conventional “safe” LTV: ≤80 % triggers no PMI (CFPB, 2022).
FHA maximum: 96.5 % for purchase loans (HUD Handbook 4000.1).
PMI cost range: 0.55–2.25 % of loan annually (Urban Institute, 2023).
Average U.S. home equity: 47 % in Q4 2023 (CoreLogic, 2024 report).
FAQ
What is an LTV ratio?
An LTV ratio compares your loan balance to the property value, expressed as a percent; lenders use it to gauge repayment risk (Fannie Mae, 2023).
Why do lenders prefer 80 % or less?
Default rates almost double once LTV exceeds 80 % because borrowers have less equity at stake (FHFA Working Paper, 2021).
How does a high LTV raise costs?
You pay private mortgage insurance and a higher interest spread—about 30–75 basis points on average (Freddie Mac, 2023).
Can I reduce LTV without more cash?
Yes—wait for the property to appreciate or repay part of the principal, then request a re-appraisal (CFPB, 2022).
Is LTV the same as CLTV?
No. CLTV adds all secured loans, including home-equity lines; lenders cap CLTV around 90 % for most products (Bankrate, 2024).
Does LTV affect refinancing?
Refinance deals usually need ≤95 % LTV; cash-out deals cap near 80 % (Fannie Mae RefiNow Guide, 2023).
Are commercial LTV limits different?
Yes. Multifamily loans often cap at 75 %, while hotels/retail cap near 65 % (CBRE Lending Survey, 2023).
How often should I recalculate?
Update annually or after large principal payments; equity shifts by 4–8 % per year on average home appreciation (NAR, 2024).
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