LTV Calculator — Loan-to-Value Ratio
Your loan-to-value ratio is the single number lenders use to price your loan. Above 80% LTV means PMI. At 78% it comes off automatically. Below 80% you can request removal.
Why LTV Matters in 2026
- • Above 80% — private mortgage insurance required on conventional loans. On a $300,000 loan at 0.75% annual, that is $187/month.
- • 80% reached — you may request PMI removal in writing (needs current appraisal, ~$300-500).
- • 78% reached — PMI cancels automatically under the Homeowners Protection Act, no request needed.
- • Rate impact — every 5-point LTV band shifts your rate 0.125-0.25%.
Methodology & Assumptions
How this calculator works, what it assumes, and where it falls short. Every calculator on TruePITI documents its math.
Formula
- LTV = loan amount ÷ home value × 100. Example: $270,000 loan on a $300,000 home = 90% LTV.
Assumptions
- Home value is the lesser of purchase price or appraised value for new purchases.
- For refinances, the current appraised value is used.
- CLTV (combined LTV) includes any second mortgage or HELOC — not modeled here.
Limitations
- Lenders use their own appraisal; your actual LTV may differ.
- PMI rate tiers vary by credit score — see the PMI calculator for precise monthly cost.
- Some lenders offer PMI removal at 75% with no appraisal; policies vary.
Worked Example
- $300,000 home, 20% down → loan $240,000 → LTV 80% → no PMI. 10% down → 90% LTV → PMI applies.
Sources
- Homeowners Protection Act (PMI cancellation rules)
- Standard real estate finance
LTV FAQ
What is a good LTV for a mortgage?
Below 80% is the standard goal — it eliminates PMI and unlocks the best rate pricing. 80-90% is common for first-time buyers (FHA allows 96.5% LTV). Above 95% you are in the highest-rate tier. Most conventional lenders cap at 97% LTV, FHA at 96.5%, VA at 100%.
How do I lower my LTV?
Three ways: (1) a larger down payment, (2) extra principal payments, (3) appreciation. A $200/month extra payment on a $300,000 loan at 6.625% reaches 80% LTV about 3-4 years earlier. Caution: LTV is based on current appraised value, so a falling market pushes LTV back up.
Is LTV the same as CLTV?
No. LTV is your first mortgage only. CLTV adds any second mortgage, HELOC, or other lien. First mortgage 75% LTV + a 10% HELOC = 85% CLTV — which matters because lenders cap CLTV (typically 85-90%).
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Last updated: 2026-09-16 | Estimates only, not financial advice.