Loan-to-Value Ratio (LTV) | Calculator

Loan Amount
Assessed Value of Property

Loan-to-Value (LTV) Ratio:

The LTV ratio is the percentage of a home’s value that a lender is willing to lend. It represents how much of the purchase price you’ll borrow, with the rest being your down payment.

  • For example, if you buy a $200,000 home and put 20% down ($40,000), the LTV ratio would be:

    • 80% financed (LTV ratio) = $160,000

A lower LTV ratio means you’ll need to make a larger down payment, but it also means you’ll have lower monthly mortgage payments. A higher LTV ratio may require private mortgage insurance (PMI), which can increase your monthly costs.

Typical LTV ratios for mortgages:

  • 80%: Most conventional loans

  • 90%: Subprime or high-risk loans

  • 100%: Cash purchases