Loan-to-Value (LTV) Calculator

Calculate your LTV ratio to check HELOC eligibility. Most lenders require 80% LTV or lower.

$
$

Understanding Loan-to-Value (LTV) Ratio

Your Loan-to-Value (LTV) ratio is one of the most important factors lenders consider when approving a HELOC. It represents the percentage of your home's value that is borrowed.

LTV Requirements for HELOCs

  • 80% LTV or Lower: Best rates and easiest approval
  • 80-85% LTV: May require mortgage insurance or higher rates
  • 85-90% LTV: Limited lender options, higher rates
  • Above 90% LTV: Very difficult to qualify

How to Calculate LTV

Formula: (Total Loan Amount ÷ Home Value) × 100 = LTV%

Example: If your home is worth $400,000 and you have a $240,000 mortgage plus want a $40,000 HELOC, your combined LTV would be:
($280,000 ÷ $400,000) × 100 = 70% LTV

Tips to Improve Your LTV

  • Pay down your existing mortgage principal
  • Make home improvements to increase property value
  • Wait for your home's value to appreciate
  • Get a professional appraisal if you think your home is worth more

Expert Tips for Smart Borrowing

✨Pro Tip

The 80% Sweet Spot

Aim to keep your total borrowing under 80% LTV. This often avoids higher rates and ensures you have an equity buffer if home prices dip.

🏡Pro Tip

Appraisals Matter

Clean up your yard and fix minor issues before the appraiser arrives. A $500 repair could add $5,000 to the appraised value.

🏛️Pro Tip

Shop Around for LTV Limits

Big banks are often strict at 80% LTV. Local credit unions are often more flexible, sometimes allowing up to 90% or 95% CLTV.

🏗️Pro Tip

Renovation Value

If you use the HELOC for renovations, the 'Future Value' of your home might allow you to borrow more than the current value suggests.

Frequently Asked Questions

Most lenders insist on a Combined LTV (CLTV) of 80% or 85% or less. This means your primary mortgage plus your new HELOC cannot exceed 85% of your home's current value. Some credit unions may go to 90%, but the rates will be higher.
It is extremely rare in today's market. During the housing boom pre-2008, 100% LTV loans were common. Now, lenders view them as very high risk. You generally need at least 15-20% equity left over after the loan is taken out.
LTV is a major risk indicator. A lower LTV (e.g., 60%) often qualifies you for the lowest advertised rates. If you push the limit to 85% or 90%, lenders will charge a 'risk premium' adding 0.50% to 1.50% to your rate.
No. Lenders will use an official appraisal or an Automated Valuation Model (AVM) that is more conservative than Zillow or Redfin estimates. Always assume the lender's value will come in 5-10% lower than the optimistic online estimates.
You have two levers: Increase the value (renovations, wait for appreciation) or decrease the debt (pay down your primary mortgage balance). Paying down your main mortgage is the fastest guaranteed way to improve your LTV position.

Related Tools

More in This Category

📉
DTI CalculatorView Calculator
→
💪
Borrowing PowerView Calculator
→
💰
Home Equity CalculatorView Calculator
→

You Might Also Need

💲
Calculate PaymentsView Tool
→
📝
Estimate Total CostsView Tool
→