FREE Loan to Value (LTV) Calculator
The Loan-to-Value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased; It's commonly used in mortgage lending to determine the amount a lender is willing to provide
Loan-to-Value (LTV) Calculator
What is the Loan-to-Value (LTV) Ratio?
The Loan-to-Value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. It's commonly used in mortgage lending to determine the amount a lender is willing to provide.
A lower LTV ratio suggests less risk for the lender, which can result in better loan terms and lower interest rates. Most lenders prefer an LTV ratio of 80% or less for conventional loans.
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What This Means
How to Use This Calculator
1. Enter the current market value of your property.
2. Enter the loan amount you currently have or are applying for.
3. Click "Calculate LTV" to see your LTV ratio and equity position.
This information can help you understand your position when refinancing or applying for a new loan. Lenders typically prefer LTV ratios below 80% for the best loan terms.