Question 1

What is loan-to-value (LTV)?

Accepted Answer

LTV is your mortgage balance divided by the home's value, as a percentage. A $320,000 loan on a $400,000 home is 80% LTV. Lenders use it to price loans and decide whether you need mortgage insurance.

Question 2

What is combined LTV (CLTV)?

Accepted Answer

CLTV adds every loan secured by the home, such as a second mortgage or HELOC, to the first mortgage balance before dividing by value. HELOC lenders typically cap CLTV at 80% to 90%.

Question 3

What LTV do I need to remove PMI?

Accepted Answer

You can request cancellation of conventional PMI when your balance reaches 80% of the original value, and it must end automatically at 78% if you are current. FHA loans with less than 10% down keep mortgage insurance for the life of the loan.

Question 4

What LTV do lenders allow for a cash-out refinance?

Accepted Answer

Conventional cash-out refinances on a primary home are commonly limited to 80% LTV. VA allows higher in some cases, and FHA generally caps at 80%.

Question 5

How do I raise my equity?

Accepted Answer

Pay down principal, make extra payments, or wait for appreciation. Improvements may add value. An appraisal sets the value lenders use.

Situation	Typical limit
PMI cancellation request (conventional)	80% LTV
PMI automatic termination	78% LTV
Cash-out refinance (primary home)	80% LTV
HELOC / home equity loan (combined)	80% to 90% CLTV
Best conventional pricing	60% to 80% LTV

LTV Calculator
Loan-to-Value & CLTV

Common LTV limits

Frequently Asked Questions

LTV CalculatorLoan-to-Value & CLTV

Common LTV limits

Frequently Asked Questions

LTV Calculator
Loan-to-Value & CLTV