LTV for Existing Homeowners

For refinancing and home equity borrowing, LTV is measured against today's home value, not your purchase price. Because values change, your true equity position can be very different from what you put down. This LTV ratio calculator uses your current balance and current value to show where you stand right now.

Equity Is Not All Yours to Borrow

Lenders rarely let you borrow against 100% of your equity. Conventional cash-out refinances cap total debt at 80% of the home's value, and any existing liens count against that cap. That is why the calculator separates your gross equity from your actually available equity — the difference is what a lender's lien position protects.

Moving Your LTV Down

Making extra principal payments or benefiting from market appreciation both lower your LTV over time. Dropping below 80% is a milestone: it removes the need for mortgage insurance on conventional loans and unlocks the best refinance rates.