LTV Calculator
Calculate your loan-to-value ratio, equity, and PMI requirement.
This tool is for informational and educational purposes only. It is not a substitute for professional financial, medical, legal, or engineering advice. See Terms of Service.
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Loan-to-value (LTV) ratio is one of the most important numbers in mortgage lending. It compares how much you owe on a property to what the property is worth. Lenders use LTV to assess risk and determine whether you need private mortgage insurance.
- Enter the property value. For a purchase, this is the agreed sale price. For refinancing, use a recent appraisal or market estimate.
- Enter the loan amount. This is the balance you owe (or plan to borrow). For a new purchase, it equals the home price minus your down payment.
The result shows your LTV as a percentage. Below 80% means you likely avoid PMI. Below 78% is the threshold where lenders must automatically cancel PMI on conventional loans. Higher LTV means more risk for the lender and higher costs for you.
Use the Share button to send your LTV calculation to a partner, lender, or financial advisor.
About Loan-to-Value Ratio
LTV is calculated by dividing the loan amount by the property value and multiplying by 100. A $280,000 loan on a $350,000 property gives an LTV of 80%. The remaining 20% is your equity.
Most conventional lenders require PMI when LTV exceeds 80%. FHA loans require mortgage insurance regardless of LTV. VA loans have no PMI requirement at any LTV level.
LTV also affects your interest rate. Lower LTV borrowers typically qualify for better rates because the lender has more protection if property values decline.
Frequently Asked Questions
What is a good LTV ratio?
An LTV of 80% or lower is considered good because it means you have at least 20% equity and can avoid PMI. An LTV of 60% or lower is excellent and may qualify you for the best available interest rates.
When does PMI get removed?
On conventional loans, you can request PMI removal at 80% LTV. Lenders are required to automatically cancel PMI when your LTV reaches 78% based on the original amortization schedule. FHA loans have different rules where MIP may last for the life of the loan.
How do I lower my LTV ratio?
You can lower LTV by making extra mortgage payments to reduce the loan balance, or by increasing property value through home improvements. If your home has appreciated significantly, a new appraisal may show a lower LTV even without extra payments.