How does LTV affect my mortgage rate?

Lower LTV = lower risk for the lender = better interest rates for you. Lenders typically offer tiered pricing at LTV thresholds like 60%, 70%, 75%, and 80%.

When can I remove PMI?

Once your LTV reaches 80% (based on original purchase price), you can request PMI cancellation. At 78% it must be automatically removed. Refinancing after your home appreciates can also eliminate PMI.

How do I calculate combined LTV (CLTV)?

Add all loans secured by the property (first mortgage + HELOC + second mortgage) and divide by the property value. Lenders use CLTV when you have multiple loans.

Loan-to-Value Ratio Calculator (LTV)

The Loan-to-Value (LTV) ratio compares the loan amount to the appraised value of the property. Lenders use it to assess risk — a higher LTV means more risk for the lender. Most conventional mortgages require an LTV of 80% or below to avoid Private Mortgage Insurance (PMI). LTV also affects your interest rate and loan approval chances.

Loan Amount ($)

Property Value / Appraised Value ($)

Frequently Asked Questions

80% or below is ideal for conventional mortgages — it avoids PMI and qualifies for better rates. FHA loans allow up to 96.5% LTV. VA and USDA loans allow 100% LTV for eligible borrowers.

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