LTV Calculator

Calculate Loan to Value ratio for mortgage and refinancing decisions

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Understanding LTV

Loan-to-Value (LTV) ratio is a crucial metric used by lenders to assess the risk of a mortgage loan. It represents the percentage of your property's value that is borrowed. A lower LTV ratio indicates less risk for the lender and often results in better loan terms for the borrower.

Key Considerations

  • Lower LTV ratios are preferred by lenders and indicate lower risk
  • Conventional loans typically require 80% or lower LTV
  • PMI (Private Mortgage Insurance) is usually required for LTV above 80%
  • Higher LTV may result in higher interest rates
  • Combined LTV includes all mortgages against the property
  • FHA loans may allow higher LTV ratios (up to 96.5%)
  • Better LTV ratios can help with refinancing opportunities

References

The LTV calculations and guidelines used in this calculator are based on information from recognized financial institutions:

Note: LTV requirements vary by loan type and lender. FHA loans may allow higher LTV ratios, while jumbo loans often require lower LTV ratios. Consult with lenders for specific requirements. This calculator provides estimates for educational purposes only.

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