What LTV do I need to avoid PMI?

On a conventional loan, an LTV of 80% or lower (a 20% down payment) typically lets you skip private mortgage insurance. Above 80%, most lenders require PMI until the balance falls back to that level.

What is the difference between LTV and CLTV?

LTV counts only the first mortgage against the property value, while combined LTV adds every lien, including second mortgages and HELOCs. Lenders look at CLTV to gauge total leverage on the home.

Does LTV use the purchase price or the appraised value?

Lenders use the lower of the purchase price or appraised value for a purchase, and the appraised value for a refinance. This calculator uses the appraised value you enter as the denominator.

Why does a lower LTV get a better rate?

A lower LTV means you have more equity and the lender risks less if you default and the home is sold. That reduced risk is usually rewarded with lower interest rates and fees.

Loan-to-Value (LTV) Calculator

Loan Amount (1st mortgage)

Appraised Value

Second Lien (optional)

Loan-to-Value (LTV)80.00%

Combined LTV (CLTV)80.00%

Home Equity$60,000.00

The Loan-to-Value Calculator shows what share of a property's appraised value is financed by your mortgage, a figure lenders watch closely when pricing loans and deciding on mortgage insurance. Divide the loan balance by the appraised value to get the LTV percentage, then add any second mortgage or HELOC to see the combined LTV. A lower ratio means more equity and usually better loan terms.

Formula

LTV = (loan / appraised value) × 100; CLTV = ((loan + second lien) / appraised value) × 100

loan: Outstanding balance on the primary mortgage
appraised value: Current appraised market value of the property
second lien: Balance of any second mortgage, HELOC, or junior loan

How it works

Enter the first mortgage loan amount and the property's appraised value; the calculator divides loan by value and multiplies by 100 for the LTV percentage.
Add an optional second lien such as a home equity loan or HELOC to compute combined LTV, which stacks both balances over the same value.
The remaining home equity is the appraised value minus every outstanding loan, shown as a dollar figure.

Worked example

A home appraises for $300,000 with a $240,000 first mortgage and a $30,000 HELOC.

LTV = (240,000 / 300,000) × 100 = 80%.
CLTV = ((240,000 + 30,000) / 300,000) × 100 = 90%.
Equity = 300,000 - 240,000 - 30,000 = $30,000.

An 80% LTV, a 90% combined LTV, and $30,000 of remaining equity.

Frequently asked questions

What LTV do I need to avoid PMI?: On a conventional loan, an LTV of 80% or lower (a 20% down payment) typically lets you skip private mortgage insurance. Above 80%, most lenders require PMI until the balance falls back to that level.
What is the difference between LTV and CLTV?: LTV counts only the first mortgage against the property value, while combined LTV adds every lien, including second mortgages and HELOCs. Lenders look at CLTV to gauge total leverage on the home.
Does LTV use the purchase price or the appraised value?: Lenders use the lower of the purchase price or appraised value for a purchase, and the appraised value for a refinance. This calculator uses the appraised value you enter as the denominator.
Why does a lower LTV get a better rate?: A lower LTV means you have more equity and the lender risks less if you default and the home is sold. That reduced risk is usually rewarded with lower interest rates and fees.

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