LTV Calculator
Calculate your loan-to-value (LTV) ratio by dividing loan amount by appraised property value. Essential for mortgage qualification, PMI requirements, and refinancing decisions.
About This Calculator
The Loan-to-Value (LTV) Ratio Calculator helps homebuyers, homeowners, and real estate investors determine the LTV ratio for any mortgage. LTV is one of the most important factors lenders use to evaluate mortgage applications, set interest rates, and determine whether private mortgage insurance (PMI) is required. This free online LTV calculator works for India, the United States, the United Kingdom, and any other market.
The LTV ratio is calculated using the formula: LTV = (Loan Amount / Property Value) × 100%. For example, if you buy a home appraised at ₹50,00,000 with a ₹40,00,000 loan, your LTV is 80%. A lower LTV ratio means you have more equity in your home, which reduces lender risk and typically gets you better mortgage terms. An 80% LTV is the standard threshold — below it you avoid PMI, above it you typically need mortgage insurance.
Regional Notes: In India, lenders like SBI and HDFC offer home loans up to 90% LTV for loans up to ₹30 lakh, 80% for ₹30-75 lakh, and 75% above ₹75 lakh. In the US, conventional loans allow up to 97% LTV with PMI, FHA loans allow 96.5% with MIP, and VA/USDA allow 100% LTV. In the UK, most lenders cap LTV at 95% for first-time buyers, with the best rates available below 60% LTV. PMI equivalents include LMIP (India), PMI (US), and higher rates (UK).
Frequently Asked Questions
What is Loan-to-Value (LTV) ratio?
Loan-to-Value (LTV) ratio is the percentage of a property's appraised value that you borrow through a mortgage. It is calculated by dividing the loan amount by the property's appraised value. For example, a 200,000 loan on a 250,000 property gives an LTV of 80%. A lower LTV means you have more equity and pose less risk to lenders.
What is a good LTV ratio?
An LTV ratio of 80% or lower is considered good. At 80% LTV or below, borrowers typically qualify for the best mortgage interest rates and avoid private mortgage insurance (PMI). LTV ratios between 80% and 90% are considered fair, 90-95% is high, and above 95% is very high and may make loan approval difficult.
How is LTV ratio calculated?
LTV ratio is calculated by dividing the mortgage loan amount by the appraised property value and multiplying by 100. The formula is: LTV = (Loan Amount / Property Value) x 100%. For example, if you borrow 200,000 on a property valued at 250,000, your LTV is (200,000 / 250,000) x 100% = 80%.
Do I need PMI if my LTV is above 80%?
Yes, in most cases lenders require private mortgage insurance (PMI) when the LTV ratio exceeds 80%. PMI protects the lender in case of default and typically costs 0.5% to 1% of the loan amount per year. Once your LTV drops to 80% through loan payments or property appreciation, you can request PMI cancellation. FHA loans require MIP (mortgage insurance premium) regardless of LTV.
What LTV do I need for a conventional loan?
Conventional loans typically require a maximum LTV of 97% (3% down payment), but you will need PMI until LTV reaches 80%. For the best rates, aim for 80% LTV or lower (20% down payment). FHA loans allow up to 96.5% LTV, VA and USDA loans allow up to 100% LTV with no PMI but have other fees.
What is CLTV (Combined Loan-to-Value)?
Combined Loan-to-Value (CLTV) ratio includes all loans secured against a property, not just the primary mortgage. This includes second mortgages, home equity loans, and HELOCs. For example, if you have a 200,000 first mortgage and a 30,000 home equity loan on a 300,000 property, your CLTV is (200,000 + 30,000) / 300,000 = 76.7%.
Can I refinance with a high LTV?
Yes, you can refinance with a high LTV, but options may be limited. FHA streamline refinancing has no LTV limit. Fannie Mae and Freddie Mac allow refinancing up to 97% LTV for rate-and-term refinances. Cash-out refinancing typically requires LTV of 80% or lower. VA IRRRL (Interest Rate Reduction Refinance Loan) has no LTV limit for eligible veterans.