House Numbers logo
Phone with House Numbers app

Discover your loan-to-value (LTV) ratio

Understand how much home equity you built and can use to meet your goals.

What is a loan-to-value (LTV) ratio?

The loan-to-value (LTV) ratio represents the percentage of the loan amount on your home compared to the appraised value or purchase price of the property.

  • A lower LTV ratio is beneficial as it indicates having more equity in the property.
  • A higher LTV ratio indicates that you have less equity in the property.
  • An LTV ratio greater than 100% indicates a home that is "underwater" and worth less than the mortgage.

Lenders use LTV to assess the risk when you borrow equity in your home.

A House

Why is your LTV important?

LTV ratio affects a homeowner's ability to secure favorable loan terms and access home equity. A lower LTV ratio means having more equity in the property, which can lead to lower interest rates, better loan options, and increased chances of qualifying for home equity products. Understanding and managing your LTV ratio is essential for making informed decisions about your home's financing and leveraging its value to your advantage.

Did you know?

Loan-to-Value in the United States

1.2 milliontotal residential properties with negative equity.

40%residential properties with an LTV of 50 - 80%.

23%homeowners that don't have a mortgage.

Sources: U.S. Census Bureau. CoreLogic Homeowner Equity Insights.