About this tool
LTV (Loan-to-Value) measures how much of a property is financed. Most mortgages require LTV under 80% to avoid PMI. FHA allows up to 96.5%. Cash-out refinance typically caps at 80%. Lower LTV = better rates and terms.
Lenders treat LTV as their primary loss-given-default proxy. At 80% LTV, a 20% price correction wipes out the buyer's equity but leaves the lender whole; at 95% LTV, the same correction leaves a 15-point loss for the lender even after foreclosure costs. That's why every additional 5 points of LTV above 80 adds 25-75 basis points to the offered mortgage rate in 2026 conforming product, and triggers private mortgage insurance (PMI) on conventional loans, mortgage insurance premium (MIP) on FHA, or a VA funding fee on VA loans. For HELOCs and home-equity loans, the relevant figure is CLTV (combined LTV): all secured debt against the property over current value, typically capped at 85-90% by 2026 most-lenders.
How it works
The "property value" denominator is whichever is LOWER of (a) appraised value and (b) contract price at purchase. After purchase, value typically updates from a new appraisal during refinance or from the lender's automated valuation model (AVM) for HELOC underwriting. Borrowers cannot use Zillow/Redfin estimates with the lender; only AMC-ordered appraisals count for LTV resets.
Common LTV pitfalls
- Forgetting PMI cancellation rules: Under the Homeowners Protection Act of 1998, conventional PMI auto-terminates at 78% LTV based on the original amortisation schedule, but borrowers can REQUEST cancellation at 80% LTV. Many homeowners overpay PMI for 2-3 years because they never file the request after a price appreciation pushes their LTV under 80.
- FHA MIP doesn't drop with payments: Unlike conventional PMI, FHA loans originated after June 2013 with 3.5% down carry MIP for the full loan term. The only way out is refinancing into a conventional loan once LTV falls under 80%.
Frequently asked questions
What LTV is needed for a cash-out refinance in 2026?
Conforming conventional cash-out refinances under Fannie Mae/Freddie Mac rules cap at 80% LTV for primary residences (75% for second homes, 70% for investment properties). FHA cash-out caps at 80% LTV as of the 2019 rule change. VA cash-out theoretically goes to 100% but most lenders cap at 90% in practice. The 2026 jumbo cash-out market typically caps at 75% LTV with strong borrowers (760+ FICO, 12 months reserves) sometimes getting to 80%.
How is LTV different from CLTV and HCLTV?
LTV counts only the first mortgage. CLTV (combined LTV) adds all secured liens including second mortgages and home-equity loans. HCLTV (high CLTV) treats undrawn HELOC limits as fully drawn for underwriting purposes. A property worth $500,000 with a $300,000 first mortgage and a $100,000 HELOC limit (only $20,000 drawn) has LTV 60%, CLTV 64%, but HCLTV 80%. Most lenders qualify against HCLTV for new credit applications.
How accurate is the Loan-to-Value Calculator?
It applies the standard formula. Accuracy is limited only by your input precision. For decisions with material consequences (taxes, medical, legal, structural), use the result as a starting point and verify with a qualified professional in the relevant field.
Is the Loan-to-Value Calculator free to use?
Yes. 100% free, no signup, no payment, no API key. The site is funded by display ads around the tool but not inside the calculation flow.
Are my inputs saved anywhere?
No. All inputs stay in your browser tab. Closing the tab discards them. The site uses Google Analytics for traffic measurement (anonymized) but the analytics never see what you type into the form.
Can I use the Loan-to-Value Calculator on my phone?
Yes. The tool is responsive and tested on iOS Safari, Android Chrome, and major desktop browsers. Touch targets meet Apple's 44pt and Google's 48dp minimum.
Does the Loan-to-Value Calculator work offline?
Yes. Once the page has loaded, it works without internet. The calculation runs in JavaScript on your device.
How do I report a bug or suggest improvement to the Loan-to-Value Calculator?
Email hi@3tej.com with the URL of this page and a description of what you saw vs expected. We typically respond within 72 hours.
Can I share results from the Loan-to-Value Calculator?
Take a screenshot or copy the output. The page doesn't generate shareable URLs for specific calculations - inputs stay in your browser only.
Why are the results different from another loan-to-value tool?
Most likely: different formula assumptions, different default values, different rounding rules, or different applicable rates. Check the methodology if both tools document it. Both can be valid for different scenarios.
Is the Loan-to-Value Calculator accurate?
The Loan-to-Value Calculator applies the standard formula for loan-to-value. Accuracy is limited only by your input precision. For decisions with material consequences, use the result as a starting point and verify with a qualified professional or the relevant official source.
Is the Loan-to-Value Calculator free?
Yes. 100% free, no signup, no payment, no API key. The site is funded by display ads that appear around the tool but not inside the calculation flow.
Are my inputs saved?
No. Inputs stay in your browser tab. Closing the tab discards them. The site uses Google Analytics for traffic measurement (anonymized) but does not see what you type into the form.
How to use the Loan-to-Value Calculator
The Loan-to-Value Calculator is a browser-based tool that runs entirely on your device. Inputs you enter never reach a server - all calculations happen client-side in JavaScript. This means:
- Privacy: nothing is logged, sent, or stored by 3Tej. Inputs disappear when you close the tab.
- Speed: results update as you type. No network round trip.
- Offline use: once the page is cached, it works without internet.
- No signup: no account, no email, no rate limits.
Step by step
- Enter your inputs in the form above. Each field is labeled with its unit (currency, percent, kg, etc.) and the expected range.
- Read the result as it updates. The number reflects the formula commonly accepted in Loan-to-Value-related calculations.
- Adjust to see sensitivity: change one input at a time and watch how the output moves. This is the fastest way to understand which variable matters most.
- Copy or screenshot the result for later reference. The page state persists for the session if your browser allows it.
When you would use this
- Quick estimates: when you need a number now and don't want to open a spreadsheet.
- Sensitivity analysis: testing how a result changes as inputs vary, before committing to a real-world decision.
- Comparison: running the same calculation with different inputs to compare options side by side.
- Learning: building intuition for how the underlying math behaves.
- Documentation: capturing a snapshot of inputs and outputs at a point in time.