Loan-to-Value Ratio Calculator
Calculate LTV ratio for mortgage and refinancing decisions
About this calculator
The Loan-to-Value (LTV) Ratio Calculator helps you determine what percentage of your property's value you're borrowing. This critical metric influences mortgage approval, interest rates, and PMI requirements. Lenders use LTV ratios to assess risk - lower ratios typically mean better loan terms and rates. Whether you're buying a home, refinancing, or considering a second mortgage, understanding your LTV ratio is essential for making informed financial decisions and securing the best possible loan conditions.
How to use
Enter your loan amount and the current market value or appraised value of your property. The calculator will instantly compute your LTV ratio as a percentage. For refinancing, use your remaining loan balance and current property value to determine if you qualify for better rates or can eliminate PMI.
Frequently asked questions
What is a good LTV ratio?
Generally, 80% or lower is considered good. This threshold often eliminates PMI requirements and qualifies you for better interest rates.
How does LTV affect my mortgage?
Higher LTV ratios typically result in higher interest rates and may require private mortgage insurance, increasing your monthly payments.
Can I improve my LTV ratio?
Yes, by making extra principal payments, waiting for property appreciation, or making a larger down payment on purchases.