Loan To Value Mortgage Calculator
Understanding your Loan-to-Value (LTV) and Combined Loan-to-Value (CLTV) ratios is crucial when purchasing or refinancing a property. The LTV Mortgage Calculator simplifies these calculations, giving you instant insight into your mortgage position, equity contributions, and potential lender recommendations.
This tool is perfect for homebuyers, refinancers, or real estate investors looking to evaluate loan eligibility, interest rates, or program options based on your property value and loan amounts.
Why Use the LTV Calculator?
- Instantly calculate LTV and CLTV ratios.
- Determine total debt secured and equity contributed.
- Understand loan eligibility for different mortgage programs.
- Identify whether your LTV/CLTV falls into low-risk or high-risk categories.
- Helps with purchase planning, refinancing decisions, or mortgage pre-qualification.
How to Use the Calculator
- Enter Property Value: Type the market value of your property.
- Enter Loan Amount Requested: For purchases, input the mortgage amount you are requesting.
- Enter Down Payment/Equity Paid: The portion of the property you are paying upfront.
- Current 1st Mortgage Balance: Use this if refinancing an existing mortgage.
- 2nd Loan Amount: Enter any second mortgage or home equity line of credit.
- Click Calculate: The tool will show:
- Total debt secured
- Total equity contributed
- LTV ratio for the first loan
- CLTV ratio for combined loans
- Recommendation based on risk
- Reset: Click “Reset” to clear inputs and start again.
Example Scenario
Scenario: You are purchasing a home valued at $400,000 with a $300,000 first mortgage, $50,000 down payment, and no second mortgage.
Inputs:
- Property Value: $400,000
- Loan Amount: $300,000
- Down Payment: $50,000
- Current 1st Mortgage Balance: 0
- 2nd Loan Amount: 0
Results:
- Total Debt Secured: $300,000
- Total Equity Contributed: $100,000
- LTV Ratio: 75%
- CLTV Ratio: 75%
- Recommendation: Excellent LTV/CLTV. Best rates likely available.
This shows the borrower is in a low-risk category, making them more likely to receive favorable interest rates.
Understanding LTV and CLTV
- LTV (Loan-to-Value): Measures the first mortgage loan relative to the property value.
Formula: LTV = (First Mortgage / Property Value) × 100 - CLTV (Combined Loan-to-Value): Includes all loans secured by the property.
Formula: CLTV = (First Mortgage + Second Mortgage / Property Value) × 100 - Equity Contributed: The portion of the property you own outright or pay upfront as a down payment.
Risk Categories:
| CLTV % | Recommendation | Notes |
|---|---|---|
| ≤75% | Excellent | Best rates, minimal risk |
| 76–80% | Good | Standard eligibility |
| 81–90% | High | May require PMI or higher rates |
| 91–95% | Very High | Limited program options |
| >95% | Very Risky | Lender may decline loan |
Helpful Tips
- For home purchases, include your down payment to calculate equity accurately.
- For refinances, use your current mortgage balance to assess LTV.
- Always check combined debts if you have a second mortgage to calculate CLTV.
- Lower LTV/CLTV ratios generally qualify for better interest rates and lower PMI.
- This calculator helps pre-qualify for loans before visiting lenders.
15 Frequently Asked Questions (FAQs)
- What is LTV?
LTV is the ratio of your first mortgage to the property’s value. - What is CLTV?
CLTV includes the first mortgage and any second mortgages relative to property value. - Why is LTV important?
Lenders use LTV to determine loan risk and eligibility. - What is considered a low LTV?
Typically 75% or below, indicating low risk. - What happens if my LTV is high?
Higher LTV may require PMI, higher interest rates, or additional documentation. - Can this calculator be used for refinances?
Yes, include the current 1st mortgage balance and any second loans. - Does down payment affect LTV?
Yes, it reduces the amount borrowed and improves LTV. - What is equity contributed?
It’s the portion of the property you own outright through down payment or prior payments. - Can I use this for second homes or investment properties?
Yes, LTV and CLTV calculations are applicable. - Is this calculator accurate?
Yes, it calculates LTV and CLTV ratios precisely using the inputs provided. - Does it factor in interest rates?
No, LTV/CLTV only measure loan amount vs property value. - How do lenders use CLTV?
They assess the total debt secured by your home to evaluate risk. - What is a typical CLTV for refinancing?
Most lenders prefer 80% or lower, though programs vary. - Can I calculate multiple scenarios?
Yes, click reset and enter different values for comparison. - Is this calculator suitable for real estate investors?
Absolutely, it helps assess financing options and risk for multiple properties.
Conclusion
The LTV Mortgage Calculator is an essential tool for homebuyers, refinancers, and real estate investors. By entering your property value, mortgage amounts, and equity contributions, you can quickly determine your LTV and CLTV, understand your risk profile, and see lender recommendations. This helps you make informed decisions, plan purchases, and improve your mortgage terms.