LTV Ratio on a $500,000 Home with $400,000 Mortgage
A $400,000 balance on a $500,000 home gives exactly an 80% LTV ratio — the PMI cancellation threshold.
How to use this tool
- Enter mortgage balance and property value in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your ltv ratio and the full breakdown beneath it.
Calculate the loan-to-value ratio for a $400,000 mortgage on a $500,000 home, which sits right at the 80% LTV mark.
Frequently asked questions
- What LTV do lenders prefer?
- Most conventional lenders prefer LTV of 80% or lower (20%+ equity). Above 80% typically requires PMI. Above 97% LTV limits your loan options. For refinancing, 80% LTV or below gives the best rates.
- How does LTV affect mortgage rates?
- Lower LTV means lower risk for the lender, which typically translates to a lower interest rate. Each 5% improvement in LTV can reduce your rate by 0.125–0.25%, depending on the lender and market conditions.