Loan divided by value
Mortgage loan-to-value is the first-lien balance divided by the property’s value. Combined LTV, or CLTV, adds other liens such as a second mortgage or HELOC. Conventional loans often use 80% LTV as the private-mortgage-insurance cutoff; that is a common program line, not a legal maximum. This page is the mortgage ratio, not marketing customer lifetime value or LTV:CAC.
CLTV = (first-lien balance + other liens) ÷ property value
Equity = property value − first-lien balance − other liens
Example
A $400,000 first mortgage on a $500,000 home is 80% LTV and $100,000 of equity. A $450,000 loan on the same $500,000 home is 90% LTV. Adding a $25,000 HELOC on the 80% example raises CLTV to 85% and cuts equity to $75,000.
Appraised value versus purchase price
Lenders typically use the lower of purchase price and appraised value. Enter the value your loan documents use. LTV can exceed 100% when the loan is larger than the value; the page does not cap the ratio.