# LTV Calculator

LTV calculator can calculate Loan to value for your mortgage based on the property value. By just entering values you get a cumulative loan to value amount in a matter of seconds.

**Total amount owed:** 0

**First Mortgage loan-to-value (LTV) ratio:** 0

**Combined loan-to-value ratio:** 0

The LTV calculator on searchenginereports.net is an easy-to-use tool due to its user-friendly interface. The users don’t have to pay a penny for using this advanced utility. Plus, you don’t have to follow any hard and fast rules for calculating LTV with our tool. By following the simple set of instructions given below, you can calculate loan to value ratio without any hassle.

- First of all, enter the borrowing amount in the space provided.
- Next, provide the appraised value of the property.
- Lastly, hit the “Calculate LTV” button.
- As a result, the LTV calculator will generate an LTV ratio for mortgages.

Our LTV calculator is an AI-based tool designed for people who wish to evaluate the risk involved with any sort of mortgage. The loan to value calculator on SearchEngineReports is a web-based utility that doesn’t ask you to install any software or plugin to calculate LTV. You just need an internet connection for accessing and using our tool.

Whether you are a mortgagor or mortgagee, you can easily assess the rate of interest that would be charged against any loan with the LTV calculator. This tool doesn’t demand a penny from any of its users. You can calculate LTV as many times as you desire without facing any type of restrictions. The lenders can use this tool to easily figure out and make a decision about accepting or rejecting a mortgage application.

The loan to value is a ratio used by financial institutions and lenders for assessing the lending risk before approving a mortgage. The loan assessments with high LTV rates are considered high-risk loans. On the approval of high-risk mortgages, the applicant is charged with a higher interest rate. In general, the financial institutions offer a lower interest rate to the applicants who have a loan to value ratio of 80% or below. An LTV is expressed as a percentage and calculated by dividing the borrowing amount by the property’s appraised value. At times, the lenders ask the applicants to purchase mortgage insurance to offset the risk due to high LTV. If you are looking for an easy way to figure out whether your mortgage would be approved or not, you should use the LTV calculator for the loan to value calculation.

### LTV Formula

Besides using an LTV calculator, you can also use the formula to calculate LTV. The formula for LTV is:

LTV = Mortgage Amount / Appraised property value

Although this formula for calculating LTV isn’t hard to understand, but sometimes leads to an inaccurate result. So, using a loan value calculator is still a better option as it provides 100% accurate results in a blink of an eye.

The manual calculation of loan to value mortgages is a time-consuming and tedious task. While calculating loan to value, many difficulties can arise, and you might not be able to calculate big sums without the help of a calculator. Moreover, the manual calculation involves several complexities, which may land you on inaccurate results.

You can avoid all of this hassle by taking the assistance of an online loan to value calculator. Besides the difficulties, the manual calculation won’t help you in making decisions about mortgaging. On the other hand, our online tool will display detailed results that will make decision-making quite an effortless task. You just need to insert values in the given boxes and click the calculate button to initiate the process and get your hands on accurate data. Therefore, using an LTV calculator is much easier than calculating loan to value on your own.

CLTV or combined loan to value is the ratio used by lenders to determine the applicant’s risk of default when more than one loan or mortgage is taken. CLTV comes into play for helping a lender assess the affordability of a buyer to purchase a property. CLTV is similar to LTV, but its calculation involves all of the mortgages. The primary difference between CLTV and LTV calculation is that the latter only involves the first mortgage in its calculation.

LTV matters a lot when it comes to borrowing money for purchasing a property. It is an important deciding factor for the lender to approve or disapprove your mortgage request. If you borrow a mortgage from the bank you have to pay a fixed percentage of interest rate. The loan to value is directly proportional to the interest charged against the mortgage.

### Lower LTV

The lower LTV means the rate of interest charged by the lender is low. It results in the benefit of the borrower as he/she will have to pay lower monthly installments.

### Higher LTV

The mortgages or loans with higher LTV require private mortgage insurance. It becomes essential for a mortgagee to calculate LTV, as the results will determine whether the PMI has to be taken out for reducing the risk. The mortgagor might have to bear a higher interest rate as well as PMI expense due to the high LTV on the mortgage.

The LTV ratio of 80% or less is ideal for a mortgage, as the mortgagor will have to face a lower rate of interest against the borrowing amount. If the LTV mortgage is higher than 80%, the borrower will also have to pay for PMI along with a greater interest rate.

### Down Payment

How much amount are you willing to give as a down payment while mortgaging? The down payment will inversely affect LTV, which means that you need a bigger down payment for a lower LTV. The loan applications with lower LTV are likely to be entertained by the lenders as compared to the higher ones.

### Sales Price

The sales price of property directly affects the loan-to-value ratio. If the sales price of a property you’re looking forward to mortgage is high, the LTV will also be high. In case you wish to achieve the lowest LTV, then you must look for a property with a lower sales price.

### Value of a Property

The value of a property will also determine the LTV ratio you’ll have to bear against a mortgage. This factor is considered a criterion while estimating a loan to value. Without knowing the value of a property, calculating LTV is impossible.