Loan-to-Value (LTV) Calculator
Find the loan-to-value ratio on a mortgage. Enter the loan amount and the property value to see the LTV and your down payment, or fill in any two fields and the calculator solves for the rest.
How to calculate loan-to-value
- Enter the loan amount you plan to borrow.
- Enter the appraised value or purchase price of the property.
- Read the LTV ratio and down payment, or leave a field blank to solve for it.
Examples
240,000 loan on a 300,000 home
Loan amount 240,000, property value 300,000
LTV 80%, down payment 60,000 (20%)
Frequently asked questions
What is loan-to-value?
Loan-to-value is the loan amount divided by the property value, shown as a percent. A 240,000 loan on a 300,000 home is an 80 percent LTV.
Why does LTV matter?
Lenders use LTV to gauge risk. A lower LTV means more equity and usually a better interest rate. An LTV above 80 percent often triggers private mortgage insurance on a conventional loan.
How is the down payment related to LTV?
The down payment is the property value minus the loan amount. An 80 percent LTV leaves a 20 percent down payment, so on a 300,000 home you would put down 60,000.
What is a good LTV ratio?
Many borrowers aim for 80 percent or lower to avoid mortgage insurance. Some loan programs allow much higher LTVs, but a higher ratio means a larger loan and more interest.
Can I solve for the loan amount from a target LTV?
Yes. Enter the property value and the LTV you want, leave the loan blank, and the calculator multiplies the value by the LTV to find the loan amount.
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