How this calculator works
LTV is your mortgage balance divided by the home's value. Combined LTV adds every other lien, such as a HELOC or second mortgage. Borrowable equity is the value times the lender's maximum CLTV, minus what you already owe.
Worked example
With the example values below: Loan-to-value, 66.7% (combined LTV 66.7%). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Home value | $450,000 |
| First mortgage balance | $300,000 |
| Other liens (HELOC, 2nd) | $0 |
How to calculate LTV
Loan-to-value is your mortgage balance divided by the home's value, as a percentage. A $320,000 loan on a $400,000 home is 80% LTV, which also means you have 20% equity. Combined LTV (CLTV) adds every loan secured by the home, such as a second mortgage or HELOC: with a $40,000 HELOC on top, CLTV is 90%.
Lenders use the lower of the purchase price or appraised value when you buy, and the current appraised value when you refinance or borrow against equity.
Why LTV matters
The calculator shows how much you could borrow at each common limit, so you can see your options before applying.
- PMI: conventional loans require it above 80% LTV and drop it at 78%.
- Interest rate: lower LTVs get better pricing; lenders add pricing adjustments as LTV rises.
- Refinancing: cash-out refinances are usually capped around 80% LTV.
- Home equity borrowing: HELOCs and home equity loans are commonly capped at 80% to 90% CLTV.
Maximum LTV by loan type
Limits can be lower for investment properties, multi-unit homes, jumbo loans and lower credit scores.
| Loan | Typical maximum LTV |
|---|---|
| Conventional purchase | 97% |
| FHA purchase | 96.5% |
| VA and USDA purchase | 100% (before financed fees) |
| Conventional cash-out refinance | 80% |
| HELOC or home equity loan | 80% to 90% CLTV |
How to lower your LTV
Pay down principal with extra payments, wait for the balance to fall through normal amortization, or let appreciation raise the home's value. Improvements that add value can also help, but the lender will use an appraisal, not what you spent. See the mortgage payoff calculator for how extra payments speed things up, and the home equity loan calculator or HELOC calculator when you're ready to borrow.
Frequently asked questions
What is a good loan-to-value ratio?
80% or lower is the key threshold: it avoids PMI on a conventional loan and qualifies for better pricing. For borrowing against equity, most lenders want your combined LTV to stay at or below 80% to 90%.
How do you calculate loan-to-value?
Divide the loan balance by the home's appraised value and multiply by 100. A $250,000 balance on a $400,000 home is 62.5% LTV.
What is combined loan-to-value (CLTV)?
The total of all loans secured by the home, such as a first mortgage plus a HELOC, divided by the home's value. Lenders use CLTV when you apply for a second mortgage or home equity line.
What LTV do I need to remove PMI?
You can ask to cancel PMI at 80% of the home's original value, and it ends automatically at 78% if you're current on payments.
Does LTV affect my mortgage rate?
Yes. Lenders charge more as LTV rises because there's less equity cushion. Moving from 95% to 80% LTV usually earns a noticeably better rate or lower fees.
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Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.