This free online Loan to Value Calculator will calculate the LTV and CLTV ratios for either your present home or a home you are looking to purchase.
Loan-to-Value (LTV) Ratio is an assessment used by lenders to determine the risk involved with granting a mortgage to the home buyer.
LTV is also used by lenders to see if they can manage to get you to borrow back the principal and down payment monies you've already paid out (line of credit or home equity loans).
A Loan-to-value Ratio of 80% or lower is usually needed in order to secure a mortgage. LTV ratios above 80% usually require the buyer to purchase Private Mortgage Insurance (PMI) in order to be approved for a mortgage.
If you have an existing home loan and you've been required to pay PMI (Private Mortgage Insurance), it might pay to keep a close watch on your LTV. Once it drops below 80% you might be able to get your lender to drop the PMI requirement.
However, you may be required to pay to have an appraisal done on your home before your lender will allow you to drop the PMI. But be forewarned, paying for the appraisal does not guarantee that you'll be permitted to drop PMI.
With that, let's use the loan to value calculator to calculate your LTV Ratio.
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Estimated home value: The estimated value of your home. If you are not sure what your home is worth, research what homes similar to yours are selling for in your area. That should give you a fairly good estimate.
First mortgage balance: The current principal balance (payoff amount) of your first mortgage.
Second mortgage balance: The current principal balance (payoff amount) of a second mortgage if you have one.
Third mortgage balance: The current principal balance (payoff amount) of a third mortgage if you have one. Include any other liens you might have against your home.
Total amount owed on home: This is the total of all mortgages and liens against your home.
First LTV ratio: This is the Loan-to-Value Ratio for just your first mortgage.
Second LTV ratio: This is the Loan-to-Value Ratio for just your second mortgage.
Third LTV ratio: This is the Loan-to-Value Ratio for just your third mortgage and/or other liens.
Total loan-to-value ratio: Based on your entries, this is your total Combined Loan-to-Value (CLTV) Ratio.