LTV and CLTV calculator
Enter the loan amount and the property value to see the loan-to-value ratio (LTV), then add any second liens or HELOC to see CLTV and HCLTV for your review of the loan file.
Runs in your browser. What you type isn't sent or stored.
Calculate LTV and CLTV
Property value
The calculator uses the lower of the price and the appraised value.
Liens on the property
Add up all closed-end subordinate balances.
Enter it to see HCLTV.
How LTV and CLTV are calculated
LTV = first mortgage loan amount ÷ property value. CLTV = (first loan + closed-end second lien balances + HELOC drawn balance) ÷ property value. HCLTV uses the full HELOC line in place of the drawn balance.
For a purchase, the calculator uses the lower of the sales price and the appraised value. For a refinance, it uses the appraised value. This follows one published convention; check the value the lender uses for the specific loan.
For purchase money transactions, the Fannie Mae Selling Guide B2-1.2-01, Loan-to-Value (LTV) Ratios (06/01/2022) says "Divide the original loan amount by the property value. (The property value is the lower of the sales price or the current appraised value.)" (source). The Fannie Mae Selling Guide B2-1.2-02, Combined Loan-to-Value (CLTV) Ratios (12/04/2018) says "The CLTV ratio is determined by dividing the sum of the items listed below by the lesser of the sales price or the appraised value of the property." (source). The Fannie Mae Selling Guide B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios (02/23/2016) includes "the full amount of any HELOCs (whether or not funds have been drawn)" (source).
Worked example
- Purchase: sales price $400,000, appraised value $410,000. Value used: $400,000.
- First mortgage $360,000: LTV = $360,000 ÷ $400,000 = 90.00%.
- HELOC with $20,000 drawn: CLTV = $380,000 ÷ $400,000 = 95.00%.
- HELOC full line $40,000: HCLTV = $400,000 ÷ $400,000 = 100.00%.
- Equity: $400,000 − $380,000 = $20,000.
Round numbers for illustration only, not a limit.
Rounding
The calculator shows each ratio to two decimals, rounded half-up. Lenders may round differently. The Fannie Mae Selling Guide B2-1.2-01, Loan-to-Value (LTV) Ratios says "The result of these calculations must be truncated (shortened) to two decimal places, then rounded up to the nearest whole percent."
LTV on bank statement loans
A bank statement loan file has both an income side and a property side. LTV is the property side: the loan against the value. The guide to 10% down and LTV covers the down-payment side, and the bank statement HELOC guide covers second liens.
For the income side, try the bank statement income calculator, or see the sample worksheet StatementReady builds from the statements.
What this calculator doesn't do
- It doesn't make a lending decision or say whether a ratio is enough for a loan.
- It sets no LTV, CLTV or HCLTV limit. Limits vary by lender, program, property and transaction.
- It doesn't add financed mortgage insurance or fees to the loan amount; enter the loan amount the lender uses.
- It doesn't look up property values. Every figure is the one you type.
Questions
What is LTV on a mortgage?
LTV, the loan-to-value ratio, is the loan amount divided by the property's value, shown as a percent. A $360,000 loan on a $400,000 home is 90% LTV.
How is LTV calculated?
Divide the loan amount by the property value. For purchase money transactions, the Fannie Mae Selling Guide B2-1.2-01, Loan-to-Value (LTV) Ratios (06/01/2022) says "Divide the original loan amount by the property value. (The property value is the lower of the sales price or the current appraised value.)" For refinances it uses the appraised value. Lenders and programs may define the value differently; confirm with the lender.
What is CLTV?
Combined loan-to-value adds the other liens on the property to the first loan. The Fannie Mae Selling Guide B2-1.2-02, Combined Loan-to-Value (CLTV) Ratios (12/04/2018) says "The CLTV ratio is determined by dividing the sum of the items listed below by the lesser of the sales price or the appraised value of the property." The items it lists are the first loan, the drawn balance of a HELOC and the unpaid balance of closed-end subordinate financing.
What is HCLTV?
Home equity combined loan-to-value uses the full HELOC line in place of the drawn balance. The Fannie Mae Selling Guide B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios (02/23/2016) includes "the full amount of any HELOCs (whether or not funds have been drawn)". Enter the HELOC line to see it.
How are the ratios rounded?
This calculator shows two decimals, rounded half-up. Lenders may round differently: the Fannie Mae Selling Guide B2-1.2-01, Loan-to-Value (LTV) Ratios says "The result of these calculations must be truncated (shortened) to two decimal places, then rounded up to the nearest whole percent."
Does the calculator set an LTV limit?
No. Limits vary by lender, program, property and transaction. The calculator shows the ratios only, so confirm any limit with the lender.
Is anything I type saved?
No. The ratios are calculated in your browser, and what you type isn't sent or stored.
Not legal or tax advice.
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