What LTV is needed to avoid PMI?

80% LTV (20% equity/down payment) eliminates the PMI requirement on conventional loans. At 78% LTV, lenders must automatically cancel PMI under the Homeowners Protection Act.

How does LTV affect mortgage interest rates?

Lenders use LTV tiers for pricing. Rates typically improve at 80%, 75%, and 70% LTV. The best conventional rates often require 60-70% LTV. Each tier may differ by 0.1-0.5%.

Can a home appraisal affect LTV?

Yes — if the appraisal comes in below the purchase price, LTV increases. If your $300,000 purchase appraises at $280,000 and you put 10% down ($30,000), your LTV is $270,000/$280,000 = 96.4%, triggering PMI.

Loan-to-Value (LTV) Ratio Calculator

Calculate loan-to-value ratio: LTV = Loan Amount / Appraised Value x 100%. Determines PMI requirement, interest rate tier, and eligible loan programs.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate loan-to-value ratio: LTV = Loan Amount / Appraised Value x 100%. Determines PMI requirement, interest rate tier, and eligible loan programs. Use the ltv ratio result to inform your calculation.

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Loan-to-Value (LTV) Ratio Calculator

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Frequently Asked Questions

What LTV is needed to avoid PMI?

How does LTV affect mortgage interest rates?

Can a home appraisal affect LTV?