LTV Calculator United States 2026
Calculate your LTV, check if you need Private Mortgage Insurance (PMI), and see how much deposit you need to avoid it. Includes PMI cost estimation and guarantor modelling.
Check your loan-to-value ratio before you apply.
LTV determines PMI and rate tiers. 80% is the key threshold for most lenders.
Select the question that matches where you are right now.
LTV (Loan-to-Value Ratio) is your loan amount expressed as a percentage of the property value. At 80% LTV or below, you avoid Private Mortgage Insurance (PMI). Above 80%, PMI adds significant cost — but allows you to buy sooner.
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How LTV is calculated and why it matters
LTV formula
LTV = (Loan amount ÷ Property value) × 100. A $480,000 loan on a $600,000 property = 80% LTV. The '20% deposit' rule means keeping LTV at or below 80%.
| Property value | 20% deposit | 80% LTV loan | 10% deposit | 90% LTV loan |
|---|---|---|---|---|
| $500,000 | $100,000 | $400,000 | $50,000 | $450,000 |
| $600,000 | $120,000 | $480,000 | $60,000 | $540,000 |
| $750,000 | $150,000 | $600,000 | $75,000 | $675,000 |
| $1,000,000 | $200,000 | $800,000 | $100,000 | $900,000 |
Private Mortgage Insurance (PMI) — cost and when it applies
What is PMI?
PMI (Private Mortgage Insurance) is a monthly premium added to your payment when a conventional loan exceeds 80% LTV. It protects the lender, not you. Typical cost is 0.46%–1.5% of the loan per year depending on LTV and credit score — and unlike some countries’ one-off premiums, it is not permanent: you can request cancellation at 80% LTV, and under the Homeowners Protection Act it terminates automatically at 78%.
| LTV | Typical PMI rate | On a $600,000 loan |
|---|---|---|
| 80.01–85% | ~0.46%/yr | ~$230/mo |
| 85.01–90% | ~0.67%/yr | ~$335/mo |
| 90.01–95% | ~0.87%/yr | ~$435/mo |
| 95%+ | ~1.1%+/yr | ~$550/mo |
Why 80% LTV is the key threshold
What changes at 80%
Below 80% LTV: no PMI on a conventional loan, better pricing (Fannie/Freddie loan-level price adjustments step down as LTV falls, with the best tiers below 60–70%), and stronger refinancing options. Above 80%: monthly PMI applies — but it is temporary. Once repayments or appreciation bring your LTV to 80% you can ask your servicer to cancel it; at 78% of the original value it must end automatically.
LTV and first home buyer schemes
FHA loans
FHA loans allow qualifying buyers to purchase with as little as 3.5% down (credit score 580+). There are no income caps; loan limits vary by county and are set annually by HUD. Instead of PMI you pay FHA mortgage insurance (MIP): a 1.75% upfront premium plus an annual premium of roughly 0.50–0.55% — and with less than 10% down, MIP lasts for the life of the loan unless you refinance.
VA loans
VA loans are for eligible veterans, active-duty service members, and surviving spouses: 0% down, no monthly mortgage insurance, and a one-time funding fee of roughly 1.25–3.3% (waived for veterans with service-connected disabilities). With full entitlement there is no loan limit.
Other low-down-payment routes
Conventional 97 (3% down, PMI until 80%), piggyback 80-10-10 loans that avoid PMI with a second lien, and lender-paid MI traded for a higher rate.
Using LTV to time refinancing decisions
LTV and refinancing
When your LTV falls below 80% through repayments or property value increase, you may qualify for lower interest rates and can drop PMI on any top-up borrowing. Tracking your current LTV helps identify the right time to refinance.
How to calculate current LTV
Current LTV = (Outstanding loan balance ÷ Current property value) × 100. If you owe $420,000 on a property now worth $600,000, your LTV = 70%. This may qualify you for a better rate tier at your lender or a competitor.
Frequently asked Frequently asked questions
What is LTV?
LTV stands for Loan-to-Value Ratio: your loan amount as a percentage of the property value. A $480,000 loan on a $600,000 property = 80% LTV. The critical threshold is 80% — above this, lenders typically require Private Mortgage Insurance (PMI).
What is Private Mortgage Insurance (PMI)?
PMI protects the lender if you default. On a conventional loan above 80% LTV it typically costs 0.46%–1.5% of the loan per year, paid monthly — at 90% LTV on a $600,000 loan, roughly $335/month. It is temporary: request cancellation at 80% LTV, automatic termination at 78% under the Homeowners Protection Act. Since tax year 2026 mortgage-insurance premiums are again deductible for itemizers (OBBBA §70108).
Can I avoid PMI without a 20% deposit?
Yes — several real routes: a VA loan (0% down for eligible veterans, no monthly MI), an FHA loan (3.5% down, with MIP), Conventional 97 (3% down with PMI you can later cancel), a piggyback 80-10-10 structure that keeps the first lien at 80%, or lender-paid MI in exchange for a slightly higher rate.
Where these figures come from
Property and mortgage figures on this page are drawn from The Federal Reserve (rate data), the Consumer Financial Protection Bureau (mortgage rules), The IRS (property-related tax deductions), and HUD.
- US mortgage rates — Federal Reserve / FRED — 30-Year Fixed Mortgage Average.
- Mortgage & closing rules — CFPB — Owning a Home.
- Home mortgage interest deduction — IRS Topic 504 — Home Mortgage Points.
- Property tax deduction (SALT cap) — IRS Topic 503 — Deductible Taxes.
- Capital gains on home sale ($250k/$500k) — IRS Topic 701 — Sale of Your Home.
- FHA & federal housing programs — HUD — US Department of Housing and Urban Development.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.