What CLTV is required to avoid PMI or get the best rate?

Most conventional lenders require CLTV at or below 80% to avoid private mortgage insurance (PMI). HELOC lenders often cap CLTV at 85-90% of appraised value.

How does a HELOC affect my CLTV?

The full committed HELOC credit line (not just the drawn balance) is typically counted in CLTV by lenders evaluating refinance applications, since the borrower can draw the full amount at any time.

Can CLTV exceed 100%?

Yes, if property value has fallen below the total outstanding loans — often called being underwater or upside-down. This situation can limit refinancing options and trigger PMI requirements.

Combined Loan-to-Value (CLTV) Ratio Calculator

Calculate the combined loan-to-value ratio for a property with multiple mortgages or loans.

By AbraCalc Editorial Team · Reviewed by AbraCalc Methodology Review · Last reviewed: 2026-06-25

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How to use this tool

Enter first mortgage balance, second mortgage / heloc balance, other secured loans and appraised property value in the fields above.
Results update instantly as you type — or click Calculate.
Read your combined loan-to-value (cltv) and the full breakdown beneath it.

⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.

Formula

CLTV = (Total of All Loan Balances) / Appraised Property Value × 100%

where Total Loans = First Mortgage + Second Mortgage + HELOC + any other secured loans.

How it works

The Combined Loan-to-Value ratio measures the total debt secured by a property as a percentage of its appraised value. Unlike a simple LTV which considers only the first mortgage, CLTV includes all liens — second mortgages, HELOCs, and other secured loans — giving lenders a fuller picture of the borrower's leverage.

Most lenders require a CLTV of 80% or below to avoid PMI requirements or to qualify for a home equity loan. A CLTV above 100% means the borrower is underwater (owes more than the home is worth).

Worked example

First + Second Mortgage on $400K Home

First mortgage balance: $250,000; Second mortgage: $30,000; Other loans: $0.
Total secured debt = $250,000 + $30,000 = $280,000.
CLTV = $280,000 / $400,000 × 100% = 70.00%.
Equity = $400,000 − $280,000 = $120,000 (30% of value).

CLTV = 70.00%; Home Equity = $120,000 (30%)

Common mistakes to avoid

Using the original purchase price instead of the current appraised value in the denominator, which can understate CLTV on a property that has depreciated.
Omitting HELOC balances or subordinate liens from the numerator — all secured debt must be included, not just the first mortgage.
Confusing CLTV with LTV: LTV uses only the first mortgage; CLTV sums all mortgages and secured lines on the property.

Key terms

CLTV (Combined Loan-to-Value): The ratio of all loans secured by a property to its appraised value, expressed as a percentage.
HELOC: Home Equity Line of Credit — a revolving credit line secured by home equity, counted in CLTV calculations.
Home Equity: The portion of a property's value the owner holds outright: property value minus total outstanding debt.
Appraised Value: The estimated market value of a property as determined by a licensed appraiser.
Underwater: When a homeowner owes more on their loans than the property is worth, resulting in a CLTV above 100%.

Frequently asked questions

What CLTV is required to avoid PMI or get the best rate?: Most conventional lenders require CLTV at or below 80% to avoid private mortgage insurance (PMI). HELOC lenders often cap CLTV at 85-90% of appraised value.
How does a HELOC affect my CLTV?: The full committed HELOC credit line (not just the drawn balance) is typically counted in CLTV by lenders evaluating refinance applications, since the borrower can draw the full amount at any time.
Can CLTV exceed 100%?: Yes, if property value has fallen below the total outstanding loans — often called being underwater or upside-down. This situation can limit refinancing options and trigger PMI requirements.