Loan-to-value
LTVWhat is loan-to-value?
Loan-to-value is your loan balance divided by the home's value, expressed as a percent. It drives pricing, mortgage insurance requirements, and how much equity you can access.
How it is calculated
LTV = (loan balance ÷ home value) × 100
What it means in practice
80% LTV is the threshold that matters most in the US. Below it, private mortgage insurance is normally not required and pricing improves.
Cash-out refinances are commonly capped at 80% LTV. Combined LTV, which counts a second lien as well, governs HELOC and home equity loan limits.
LTV moves with both your balance and your home's value, so an appraisal can change what you qualify for even if you have paid nothing extra.