Loan-to-Value (LTV) Calculator

Our Loan-to-Value (LTV) Calculator is designed for real estate investors and homeowners to determine their LTV ratio, helping them make informed financial decisions regarding property investments.

LTV Calculator

Property Value ($) *

Loan Amount ($) *

Results

Loan-to-Value Ratio: 0%

Source and Methodology

All calculations are based on the standard financial formulas provided by authoritative sources in the real estate industry. Learn more. All calculations are strictly based on the formulas and data provided by this source.

The Formula Explained

The LTV ratio is calculated using the formula: LTV = (Loan Amount / Property Value) × 100

Glossary of Terms

Property Value: The total worth of the real estate being evaluated.
Loan Amount: The amount of money borrowed from the lender.
Loan-to-Value Ratio: The ratio of the loan amount to the property value, expressed as a percentage.

Frequently Asked Questions (FAQ)

What is LTV?

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.

Why is LTV important?

LTV is important because it helps lenders assess the risk of a loan. A higher LTV indicates higher risk.

How can I lower my LTV?

To lower your LTV, you can increase your down payment or seek a property with a lower price relative to your loan amount.

What is a good LTV ratio?

A good LTV ratio varies by lender, but typically an LTV of 80% or lower is considered favorable.

Does LTV affect interest rates?

Yes, a lower LTV can often result in a more favorable interest rate.

Tool developed by Ugo Candido. Content verified by the LandC Expert Team.
Last reviewed for accuracy on: October 15, 2023.