Loan-to-Value (LTV) Calculator - PMI Threshold, Equity & CLTV
You're buying a $245,000 home with FHA financing and 3.5% down ($8,575). That leaves a $236,425 loan—96.5% loan-to-value. Lenders use LTV to set PMI rules and risk tiers; 80% or below usually avoids PMI on conventional loans. Enter your home price and loan or down payment below to see equity, PMI flags, and common thresholds at 80%, 78%, 97%, and 96.5%.
Loan-to-Value Ratio
96.50%
PMI Typically Required
LTV exceeds 80%. Private Mortgage Insurance is usually required until you reach 78% LTV.
- Loan Amount
- $236,425
- Down Payment
- $8,575
- Equity
- $8,575
- Down Payment %
- 3.5%
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LTV Target Scenarios
| Target LTV | Down Payment Needed | Loan Amount | Notes |
|---|---|---|---|
| 80% | $49,000 | $196,000 | No PMI threshold |
| 78% | $53,900 | $191,100 | Automatic PMI termination |
| 96.5% | $8,575 | $236,425 | FHA minimum (3.5%) |
| 97% | $7,350 | $237,650 | Conventional low-down |
Methodology and limitations
Last reviewed:
Methodology
Calculates loan-to-value ratio by dividing loan amount by home price or appraised value. Supports input modes: home price with loan amount, or home price with down payment. Calculates combined loan-to-value (CLTV) when second lien balance is entered.
Limitations
Planning estimate only. PMI requirements, lender LTV limits, appraisal outcomes, and underwriting rules vary by loan program, lender, and borrower profile. Not a pre-approval or appraisal.
How Loan-to-Value (LTV) Is Calculated
You're buying a $245,000 home with FHA financing and 3.5% down ($8,575). That leaves a $236,425 loan—96.5% loan-to-value. Lenders use LTV to set PMI rules and risk tiers; 80% or below usually avoids PMI on conventional loans. Enter your home price and loan or down payment below to see equity, PMI flags, and common thresholds at 80%, 78%, 97%, and 96.5%.
Method used
Loan-to-value equals loan amount divided by home value (purchase price or appraisal). Combined LTV adds a second lien or HELOC balance. The tool flags typical PMI territory above 80% LTV and shows down payment needed for common thresholds.
LTV % = loan / home value × 100; CLTV % = (first + second lien) / home value × 100
Practical example
You're buying a $245,000 home with FHA financing and 3.5% down ($8,575)—a $236,425 loan and 96.5% LTV. Enter home price and loan or down payment below for PMI flags and CLTV if you add a HELOC.
- Home price: $245,000
- Down payment: $8,575 (3.5%)
- Loan amount: $236,425
96.5% LTV with FHA PMI threshold callouts; optional CLTV with second lien
What this includes
- LTV from loan or down payment inputs
- CLTV with second lien
- PMI threshold callouts and target LTV scenarios
What this excludes
- Lender overlays, MI pricing, and appraisal disputes
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Frequently Asked Questions
What is a good loan-to-value ratio for a mortgage?
A good LTV ratio is 80% or below, which avoids Private Mortgage Insurance and signals to lenders that you have substantial equity. Many conventional loans allow LTV up to 97% with PMI, FHA loans allow 96.5% with mortgage insurance, and VA loans permit 100% LTV with no down payment for eligible borrowers. The lower your LTV, the less risk to the lender and the more equity you control from day one.
When does PMI get removed on a conventional mortgage?
PMI is typically required on conventional loans when LTV exceeds 80% at origination. By law, lenders must automatically terminate PMI when your LTV reaches 78% through scheduled principal payments, assuming you are current. You can request cancellation at 80% LTV if you have a good payment history and the home value has not declined. Refinancing or making large principal payments can also eliminate PMI early.
How is LTV different from CLTV?
LTV (Loan-to-Value) is the ratio of your first mortgage balance to the home's value. CLTV (Combined Loan-to-Value) adds any second liens — such as a HELOC or second mortgage — to your first mortgage balance, then divides by the home value. If you have a $196,000 first mortgage and a $5,000 HELOC on a $245,000 home, your LTV is 80% and CLTV is about 82%. Lenders review CLTV to understand total leverage when approving home equity products.
What LTV is required for an FHA loan?
FHA loans allow a maximum LTV of 96.5%, which means you can finance 96.5% of the purchase price and put down as little as 3.5%. FHA mortgage insurance is required for the life of the loan if you put down less than 10%, or for 11 years if you put down 10% or more. This calculator shows the target 96.5% LTV scenario so you can see the required down payment and loan amount for FHA financing.
Can I calculate LTV with a down payment instead of a loan amount?
Yes. This calculator supports two input modes: (1) enter home price and loan amount to calculate LTV, or (2) enter home price and down payment to calculate the loan amount and resulting LTV. Both methods produce the same ratio. Use whichever input matches your planning scenario or pre-approval letter from the lender.
What is the 78% LTV threshold?
The 78% LTV threshold is the point at which PMI must be automatically terminated on conventional mortgages, per the Homeowners Protection Act. You reach 78% LTV through scheduled principal payments when your remaining loan balance equals 78% of the original home value. This is different from 80% LTV, where you can request PMI cancellation but the lender is not required to remove it until you hit 78%.
Does this LTV calculator include closing costs or home inspection?
No. This tool focuses on the LTV ratio: loan amount divided by home value. Closing costs, appraisal fees, inspections, and other one-time charges are not included in the LTV calculation itself. Use the Closing Cost Estimator to plan for upfront expenses, and combine that with this LTV tool to understand your total cash needed to close and monthly payment obligations.
How do lenders view high LTV ratios?
High LTV ratios — above 80% — indicate less borrower equity and more lender risk. To offset this risk, lenders typically require PMI on conventional loans, charge mortgage insurance premiums on FHA and USDA loans, or impose higher interest rates. Lower LTV ratios signal financial stability and reduce lender risk, which can result in better loan terms, lower rates, and no mortgage insurance requirement.