Loan-to-Value (LTV) Calculator: Equity, PMI, and HELOC Room
Enter your home's value and the balances against it to see your loan-to-value ratio, the combined LTV once a second lien is counted, and the equity left over. A verdict row flags PMI, refinance headroom, and HELOC room at the combined-LTV cap you set.
A realistic current market value or recent appraisal, not what you paid
What you still owe on the first mortgage
Any home equity loan or drawn line against the same home
The cap a lender applies to all liens together; many sit near 80%
Loan-to-value ratio
75.0%
$300,000 first mortgage on a $400,000 home
Combined LTV
75.0%
same as LTV with no second lien
Equity
$100,000
25.0% of the value is yours
What this ratio means for you
- PMI unlikely
Mortgage insurance
first-mortgage LTV is at or below 80%, where conventional PMI usually is not required
- Refinance-friendly
Refinancing
at or under 80% LTV you typically see the widest menu of conventional refinance options
- $20,000
HELOC room at 80% combined LTV
a lender capping combined LTV at 80% could extend up to about this much
If the home's value moved
| Scenario | Home value | LTV | Equity |
|---|---|---|---|
| -10% | $360,000 | 83.3% | $60,000 |
| -5% | $380,000 | 78.9% | $80,000 |
| Today | $400,000 | 75.0% | $100,000 |
| +5% | $420,000 | 71.4% | $120,000 |
| +10% | $440,000 | 68.2% | $140,000 |
PMI decisions key off the first mortgage alone; HELOC room and refinance headroom count every lien. A 10% dip in value moves a 75% LTV past 83%, which is the buffer lenders are pricing in.
Why lenders start with this one ratio
Loan-to-value is the lender's cushion expressed as a percentage. If a borrower stops paying and the house has to be sold, the lender recovers the sale price minus costs, so the smaller the loan is relative to the value, the less likely the lender loses money. That is why the loan-to-value ratio drives nearly every mortgage decision: whether you owe mortgage insurance, which rate tier you land in, how large a refinance can be, and whether there is anything left to borrow against. Your credit score describes you; LTV describes the deal.
How the math works once a second lien joins
LTV is the first mortgage balance divided by the home's value. Combined LTV, or CLTV, divides the total of every lien by the value, and equity is the value minus all of those liens. Take a $400,000 home with a $300,000 mortgage: LTV is 75% and equity is $100,000. Add a $40,000 HELOC and the combined LTV climbs to 85% while equity shrinks to $60,000, even though the first mortgage never changed. HELOC room works backwards from a lender's cap: at an 80% combined limit the liens can total $320,000, so with only the first mortgage in place there is about $20,000 of room, and none once that $40,000 line is drawn.
The 80% line and what sits on each side of it
Conventional lenders typically require private mortgage insurance when the first-mortgage LTV is above 80%, and it can usually be removed once the balance falls to 80% of the original value. Below the line, refinancing opens up: the widest menu of programs and pricing generally lives at or under 80%, which is why the verdict row calls that range refinance-friendly. The PMI calculator puts a monthly cost on the wrong side of the line and projects when normal payments cross back over it.
When to check it, and why it moves on its own
LTV changes even when you do nothing. Every payment retires a little principal, and the schedule in the amortization calculator shows that the pace speeds up over time. Appreciation moves the denominator: 3% a year on that $400,000 home adds $12,000 of value, which trims about two points off the ratio without a single extra dollar paid. Run the numbers before requesting PMI removal, before a refinance quote, before applying for a HELOC, and after any year your market moved sharply. The scenario table shows how a modest price swing in either direction changes the picture, which is exactly the buffer lenders are pricing in.
Frequently asked questions
What is a good loan-to-value ratio?
Lower is stronger, and 80% is the line most conventional lenders treat as the boundary between standard and higher-risk pricing. At or below 80% you typically avoid PMI and qualify for the broadest set of refinance options. Ratios in the 80-95% range are common for recent buyers and are not a problem in themselves; they just cost a little more until amortization and appreciation bring them down.
What is the difference between LTV and combined LTV?
LTV compares only the first mortgage to the home's value. Combined LTV, or CLTV, adds every lien on the property, including a home equity loan or a drawn HELOC balance, before dividing by the value. Lenders use LTV for PMI decisions and CLTV for second-lien lending, which is why the calculator shows both.
Should I use the purchase price or the current market value?
Use whichever the lender will use. For PMI removal on the original schedule, servicers generally look at the value from purchase. For a refinance or a HELOC, a new appraisal sets the value, so a realistic current estimate is the right input. Try both if they differ a lot: the gap shows how much appreciation is doing for you.
How can I lower my LTV faster?
Three levers: pay extra principal, let the home appreciate, or both. Extra principal is the lever you control, and even modest amounts pull the ratio down on top of the regular schedule. A rising market helps, but only counts once an appraisal proves it. Refinancing on its own does not lower LTV unless you bring cash to closing.
Can my LTV be above 100%?
Yes. If the balance owed exceeds what the home would sell for, the loan is underwater and equity is negative. It usually happens after a price drop early in a loan, when little principal has been paid. Continuing to pay on schedule while the market recovers is the common path out, and the calculator shows negative equity plainly when that is the case.
Does this calculator save my numbers?
No. Everything runs in your browser and nothing you type is stored or sent anywhere.
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