Loan-to-value calculator
Enter your loan and home value, get the LTV.
How is loan-to-value calculated?
LTV = loan amount ÷ home value × 100%. A $240,000 loan on a $300,000 home is 80% LTV. Combined LTV (CLTV) adds any second mortgages or home equity loans.
When can I remove PMI?
Under the Homeowners Protection Act, you can ask your servicer to cancel private mortgage insurance when your balance is scheduled to reach 80% of the home’s original value, and the servicer must end it automatically at 78% if you are current on payments (CFPB).
Example
On a home whose original value was $300,000, you can request cancellation at a scheduled balance of $240,000; it ends automatically at $234,000.
What conditions apply to a cancellation request?
The CFPB lists a written request, a good payment history, being current on payments, no second liens, and possibly proof that the home has not lost value.
What is the “original value”?
Usually the lower of the purchase price and the appraised value when you bought the home. These rules cover conventional loans on a principal residence closed on or after July 29, 1999; FHA and VA loans work differently.
Does PMI end at the halfway point of the loan?
Yes. The CFPB says private mortgage insurance must also end the month after you reach the midpoint of the loan term, such as year 15 of a 30-year loan, if you are current on payments. This applies to loans covered by the Homeowners Protection Act.
What is the difference between LTV and CLTV?
LTV counts only the first mortgage. CLTV adds every other loan secured by the same home, such as a second mortgage or a home equity line, so it shows how much of the value is already borrowed against.
How does the down payment change LTV?
When you borrow the rest, LTV = 100% minus the down payment as a share of the value. A 10% down payment is 90% LTV; a 20% down payment is 80%.
How the ratios are calculated
LTV is the first-mortgage balance divided by the home's value. CLTV adds the balances of other loans against the home to the numerator. When a home is bought, the value is the lower of the purchase price and the appraisal; for later loans lenders order a new appraisal. The PMI lines use the original value, not today's value: 80% to request cancellation and 78% for automatic removal, measured on the scheduled balance, so extra payments bring you to the 80% line sooner. Loans owned by Fannie Mae or Freddie Mac may have their own rules, which cannot be less favorable to you than these.
Worked examples on a $350,000 home
With a $315,000 loan, LTV is 90.0%. You can request PMI cancellation when the balance reaches $280,000, which means paying down $35,000, and it ends automatically at $273,000. Now take a $280,000 first mortgage plus a $35,000 home equity loan: LTV is 80.0% but CLTV is 90.0%. The second lien also blocks a PMI cancellation request, since you must certify there are no junior liens.
Mistakes to avoid
The first is using today's value for the cancellation lines. The statutory lines are based on the original value, and the servicer may ask for evidence, such as an appraisal, that the value has not fallen. The second is leaving out a second loan or HELOC when you apply for another one: the lender will count it. The third is assuming these rules cover every loan; FHA, VA and lender-paid insurance follow different rules.
Sources: CFPB, "When can I remove private mortgage insurance (PMI) from my loan?" (80% request, 78% automatic, midpoint rule, conditions, definition of original value). Related tools: PMI calculator, mortgage calculator, HELOC calculator, refinance calculator.
Estimates for planning only — not financial or tax advice. Your lender, plan or tax professional decides. How we check our calculators.