How to calculate LTV
Divide the proposed new loan amount by the current property value, then multiply by 100. For example, a $320,000 proposed loan on a $500,000 home equals a 64% LTV.
Why maximum LTV differs
Maximum LTV may vary by mortgage program, property type, occupancy, transaction details, and provider guidelines. There is no universal maximum that applies to every homeowner.
Equity is not guaranteed proceeds
A home may have substantial equity, but actual cash available can be reduced by the existing payoff, closing costs, program constraints, and qualification review.
Frequently asked questions
What is a good LTV for cash-out refinancing?
There is no single answer. Program and provider requirements determine whether a proposed LTV is available.
Can I use an online home value?
It can be a planning input, but a provider may use an appraisal or other permitted valuation method for a transaction.