How to use
- Enter the loan balance or the amount you plan to borrow.
- Enter the value you want in the denominator. Label it for yourself: price or appraisal.
- Press Calculate. The hero is the percent.
- If you only know a price and a percent down, the down-payment page shows the financed amount. Divide that by the value here if the value is different.
How it's calculated
Loan-to-value = loan ÷ value × 100.
A loan larger than the value produces a percent over 100. That is allowed. A value of zero is rejected.
Worked example
A $320,000 loan on a $400,000 value is 80 percent. A $360,000 loan on the same value is 90 percent. The page does not treat 80 as a cutoff.
Assumptions
One loan and one value, at one moment. Combined loan-to-value for a second mortgage means you add the loans first and type the sum.
FAQ
Does 80 percent mean I avoid mortgage insurance?
Not on this page. Insurers and lenders set their own lines. The PMI page costs a rate you type. It does not turn on at 80.
Which value do I use?
The one in the question you are asking. A purchase LTV often uses the price. A refinance LTV often uses an appraisal. Type that number.
Can I add a second loan?
Add the balances and enter the total as the loan.
Is this the same as a down payment?
A down payment is cash. Loan-to-value is a ratio. They match only when the value equals the price and the loan is the price minus the down payment.