{"id":1002,"date":"2026-08-23T23:50:41","date_gmt":"2026-08-24T03:50:41","guid":{"rendered":"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/"},"modified":"2026-08-24T00:05:59","modified_gmt":"2026-08-24T04:05:59","slug":"ltv-calculator-how-to-use","status":"publish","type":"post","link":"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/","title":{"rendered":"LTV Calculator: How to Calculate Loan-to-Value Ratio (2026)"},"content":{"rendered":"<p>The <a href=\"\/ltv-calculator\">LTV calculator<\/a> tells you your loan-to-value ratio in 2 seconds \u2014 the number that determines your interest rate, whether you need PMI, and how much equity you can pull out on a cash-out refinance. On a $190K property with $142,500 loan, your LTV is 75% \u2014 the magic number for BRRRR cash-out refi. Below 80% = no PMI. Above 80% = higher rate + monthly PMI payment.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<p><span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav>\n<ul class='ez-toc-list ez-toc-list-level-1 ' >\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#What_Is_LTV_and_Why_Lenders_Care\" >What Is LTV and Why Lenders Care<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#How_to_Use_the_LTV_Calculator\" >How to Use the LTV Calculator<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#Mode_1_Standard_%E2%80%94_Calculate_Your_LTV\" >Mode 1: Standard \u2014 Calculate Your LTV<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#Mode_2_Reverse_%E2%80%94_Find_Maximum_Loan\" >Mode 2: Reverse \u2014 Find Maximum Loan<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#Mode_3_Reverse_%E2%80%94_Find_Required_Value\" >Mode 3: Reverse \u2014 Find Required Value<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#LTV_Thresholds_That_Matter\" >LTV Thresholds That Matter<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#Worked_Example_1_BRRRR_Cash-Out_Refinance\" >Worked Example 1: BRRRR Cash-Out Refinance<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#Worked_Example_2_Investment_Property_Purchase\" >Worked Example 2: Investment Property Purchase<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#LTV_for_Hard_Money_Loans\" >LTV for Hard Money Loans<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#5_LTV_Mistakes\" >5 LTV Mistakes<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#1_Using_Purchase_Price_Instead_of_Current_Value_for_Refi\" >1. Using Purchase Price Instead of Current Value for Refi<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#2_Forgetting_Closing_Costs_Reduce_Cash_Back\" >2. Forgetting Closing Costs Reduce Cash Back<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#3_Targeting_Too_High_LTV_on_Investment_Property\" >3. Targeting Too High LTV on Investment Property<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#4_Not_Checking_Lenders_LTV_Limit_Before_Appraisal\" >4. Not Checking Lender&#8217;s LTV Limit Before Appraisal<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#5_Confusing_LTV_with_CLTV\" >5. Confusing LTV with CLTV<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#What_is_a_good_LTV_for_investment_property\" >What is a good LTV for investment property?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#How_does_LTV_affect_my_interest_rate\" >How does LTV affect my interest rate?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#What_LTV_do_I_need_for_BRRRR_refinance\" >What LTV do I need for BRRRR refinance?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#Do_I_need_PMI_on_investment_property\" >Do I need PMI on investment property?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#What_is_the_difference_between_LTV_and_equity\" >What is the difference between LTV and equity?<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/arvcalc.com\/blog\/ltv-calculator-how-to-use\/#Related_Calculators_and_Guides\" >Related Calculators and Guides<\/a><\/li>\n<\/ul>\n<\/nav>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_LTV_and_Why_Lenders_Care\"><\/span><span class=\"ez-toc-section\" id=\"What_Is_LTV_and_Why_Lenders_Care\"><\/span>What Is LTV and Why Lenders Care<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>LTV = Loan Amount \u00f7 Property Value \u00d7 100<\/strong><\/p>\n<p>A $150,000 loan on a $200,000 property = 75% LTV. The remaining 25% is your equity \u2014 the lender&#8217;s safety margin. If you stop paying, the lender forecloses and needs to recover $150K from a $200K property. At 75% LTV, they have a 25% cushion. At 95% LTV, the cushion is only 5% \u2014 one bad appraisal and they lose money.<\/p>\n<p>That is why LTV determines everything:<\/p>\n<ul>\n<li><strong>Interest rate<\/strong> \u2014 lower LTV = lower rate. 75% LTV gets 0.25\u20130.50% better rate than 90% LTV<\/li>\n<li><strong>PMI requirement<\/strong> \u2014 above 80% LTV on conventional loans = monthly PMI ($50\u2013$200\/month)<\/li>\n<li><strong>Loan approval<\/strong> \u2014 most investment property loans cap at 75\u201380% LTV<\/li>\n<li><strong>Cash-out refinance<\/strong> \u2014 BRRRR investors need 75% LTV to maximize capital recovery<\/li>\n<li><strong>Hard money<\/strong> \u2014 lenders cap at 65\u201375% of ARV (after-repair value)<\/li>\n<\/ul>\n<p>The <a href=\"\/ltv-calculator\">LTV calculator<\/a> computes your ratio instantly and shows where you fall on the lender&#8217;s risk scale.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Use_the_LTV_Calculator\"><\/span><span class=\"ez-toc-section\" id=\"How_to_Use_the_LTV_Calculator\"><\/span>How to Use the LTV Calculator<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Mode_1_Standard_%E2%80%94_Calculate_Your_LTV\"><\/span><span class=\"ez-toc-section\" id=\"Mode_1_Standard_%E2%80%94_Calculate_Your_LTV\"><\/span>Mode 1: Standard \u2014 Calculate Your LTV<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Enter property value and loan amount. The calculator shows your LTV percentage, equity amount, and equity percentage. Compare to lender thresholds (80% conventional, 75% BRRRR refi, 65% hard money).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mode_2_Reverse_%E2%80%94_Find_Maximum_Loan\"><\/span><span class=\"ez-toc-section\" id=\"Mode_2_Reverse_%E2%80%94_Find_Maximum_Loan\"><\/span>Mode 2: Reverse \u2014 Find Maximum Loan<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Enter property value and target LTV (e.g., 75%). The calculator shows the maximum loan amount. For a $190K ARV at 75% LTV = $142,500 max loan. This is what BRRRR investors use to calculate their cash-out refinance proceeds.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mode_3_Reverse_%E2%80%94_Find_Required_Value\"><\/span><span class=\"ez-toc-section\" id=\"Mode_3_Reverse_%E2%80%94_Find_Required_Value\"><\/span>Mode 3: Reverse \u2014 Find Required Value<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Enter your loan amount and target LTV. The calculator shows the minimum property value needed. If your loan is $142,500 and target is 75% LTV, the property must appraise at $190,000+. Below that = you leave money in the deal.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"LTV_Thresholds_That_Matter\"><\/span><span class=\"ez-toc-section\" id=\"LTV_Thresholds_That_Matter\"><\/span>LTV Thresholds That Matter<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>LTV<\/th>\n<th>What Happens<\/th>\n<th>Typical Use Case<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>65%<\/strong><\/td>\n<td>Hard money maximum (conservative lenders)<\/td>\n<td>Fix-and-flip acquisition<\/td>\n<\/tr>\n<tr>\n<td><strong>70%<\/strong><\/td>\n<td>Conservative BRRRR refi, best rates<\/td>\n<td>Leave more equity, better cash flow<\/td>\n<\/tr>\n<tr>\n<td><strong>75%<\/strong><\/td>\n<td>Standard BRRRR cash-out refi<\/td>\n<td>Maximize capital recovery<\/td>\n<\/tr>\n<tr>\n<td><strong>80%<\/strong><\/td>\n<td>PMI threshold (conventional). Max for most investment loans<\/td>\n<td>Standard buy-and-hold purchase<\/td>\n<\/tr>\n<tr>\n<td><strong>85\u201390%<\/strong><\/td>\n<td>Higher rate + PMI. Some DSCR lenders allow<\/td>\n<td>Low down payment (risky)<\/td>\n<\/tr>\n<tr>\n<td><strong>95\u201397%<\/strong><\/td>\n<td>Primary residence only (FHA\/conventional). NOT for investors<\/td>\n<td>Homebuyers only<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>For investment property, you almost always deal with 75\u201380% LTV. The <a href=\"\/ltv-calculator\">LTV calculator<\/a> shows exactly where your deal falls.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"250\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-thresholds.jpg\" alt=\"LTV calculator LTV thresholds: 65% hard money \u2192 75% BRRRR \u2192 80% no PMI\" class=\"wp-image-1005\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-thresholds.jpg 900w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-thresholds-300x83.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-thresholds-768x213.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>LTV thresholds: 65% hard money \u2192 75% BRRRR \u2192 80% no PMI<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Worked_Example_1_BRRRR_Cash-Out_Refinance\"><\/span><span class=\"ez-toc-section\" id=\"Worked_Example_1_BRRRR_Cash-Out_Refinance\"><\/span>Worked Example 1: BRRRR Cash-Out Refinance<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Scenario:<\/strong> You bought a Greensboro SFR for $110K cash, rehabbed for $30K, and it appraises at $190K after renovation. You want to refinance and pull cash out.<\/p>\n<pre><code>ARV (appraised value): $190,000\n\nAt 75% LTV: $190,000 \u00d7 0.75 = $142,500 loan\nCash back: $142,500 \u2212 $2,850 (refi closing) = $139,650\nCapital invested: $147,536\nCapital recovered: 95%\n\nAt 70% LTV: $190,000 \u00d7 0.70 = $133,000 loan\nCash back: $133,000 \u2212 $2,660 = $130,340\nCapital recovered: 88%<\/code><\/pre>\n<p><strong>5% LTV difference = $9,310 less cash back.<\/strong> That $9,310 stays in the deal as extra equity \u2014 safer, but ties up capital you could deploy elsewhere. Most BRRRR investors target 75% LTV to maximize recycling. Model both in the <a href=\"\/ltv-calculator\">LTV calculator<\/a>.<\/p>\n<p>For the full BRRRR cycle analysis, use the <a href=\"\/brrrr-calculator\">BRRRR calculator<\/a>. For state-specific BRRRR, see <a href=\"\/blog\/brrrr-strategy-north-carolina\/\">NC<\/a>, <a href=\"\/blog\/brrrr-strategy-georgia\/\">GA<\/a>, or <a href=\"\/blog\/ohio-brrrr-strategy\/\">OH BRRRR guides<\/a>.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"180\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-brrrr.jpg\" alt=\"LTV calculator BRRRR: 75% LTV = $142,500 back (95%) vs 70% = $133,000 (88%)\" class=\"wp-image-1006\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-brrrr.jpg 900w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-brrrr-300x60.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-brrrr-768x154.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>BRRRR: 75% LTV = $142,500 back (95%) vs 70% = $133,000 (88%)<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Worked_Example_2_Investment_Property_Purchase\"><\/span><span class=\"ez-toc-section\" id=\"Worked_Example_2_Investment_Property_Purchase\"><\/span>Worked Example 2: Investment Property Purchase<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Scenario:<\/strong> Buying a $300K Indianapolis rental. Comparing 20% vs 25% down payment.<\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Down Payment<\/th>\n<th>Loan<\/th>\n<th>LTV<\/th>\n<th>PMI?<\/th>\n<th>Monthly P&#038;I<\/th>\n<th>Cash Flow Impact<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>20% ($60K)<\/td>\n<td>$240,000<\/td>\n<td>80%<\/td>\n<td>No (at 80% line)<\/td>\n<td>$1,597<\/td>\n<td>Lower CF but less cash tied up<\/td>\n<\/tr>\n<tr>\n<td>25% ($75K)<\/td>\n<td>$225,000<\/td>\n<td>75%<\/td>\n<td>No<\/td>\n<td>$1,497<\/td>\n<td>$100\/mo better CF, $15K more cash in<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>5% more down = $100\/month better cash flow but $15,000 more capital deployed. The <a href=\"\/ltv-calculator\">LTV calculator<\/a> shows the trade-off. Compare the cash flow impact in the <a href=\"\/property-cash-flow-calculator\">cash flow calculator<\/a> and the return impact in the <a href=\"\/cash-on-cash-calculator\">cash-on-cash calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"LTV_for_Hard_Money_Loans\"><\/span><span class=\"ez-toc-section\" id=\"LTV_for_Hard_Money_Loans\"><\/span>LTV for Hard Money Loans<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Hard money lenders use two LTV measurements:<\/p>\n<ul>\n<li><strong>LTV (purchase)<\/strong> \u2014 loan \u00f7 purchase price. Typically 70\u201380%.<\/li>\n<li><strong>LTV (ARV)<\/strong> \u2014 loan \u00f7 after-repair value. Typically 65\u201375%.<\/li>\n<\/ul>\n<p>A $200K loan on a $250K purchase = 80% LTV (purchase). But if the ARV is $350K, that same $200K loan = 57% LTV (ARV) \u2014 much safer for the lender. Some hard money lenders will fund up to 90% of purchase if ARV-based LTV stays under 70%. Calculate in the <a href=\"\/hard-money-loan-calculator\">hard money calculator<\/a>.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"180\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-hardmoney.jpg\" alt=\"LTV calculator Hard money: purchase LTV (80%) vs ARV LTV (57%) \u2014 same loan, different risk\" class=\"wp-image-1007\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-hardmoney.jpg 900w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-hardmoney-300x60.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/ltv-hardmoney-768x154.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>Hard money: purchase LTV (80%) vs ARV LTV (57%) \u2014 same loan, different risk<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"5_LTV_Mistakes\"><\/span><span class=\"ez-toc-section\" id=\"5_LTV_Mistakes\"><\/span>5 LTV Mistakes<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Using_Purchase_Price_Instead_of_Current_Value_for_Refi\"><\/span><span class=\"ez-toc-section\" id=\"1_Using_Purchase_Price_Instead_of_Current_Value_for_Refi\"><\/span>1. Using Purchase Price Instead of Current Value for Refi<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> You bought at $110K and rehabbed to $190K value. LTV for refinance uses the NEW appraised value ($190K), not the purchase price. Using $110K gives you a meaningless 129% LTV.<\/p>\n<p><strong>Fix:<\/strong> Always use current appraised value for refi LTV. Get a BPO or appraisal before applying.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Forgetting_Closing_Costs_Reduce_Cash_Back\"><\/span><span class=\"ez-toc-section\" id=\"2_Forgetting_Closing_Costs_Reduce_Cash_Back\"><\/span>2. Forgetting Closing Costs Reduce Cash Back<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> 75% of $190K = $142,500 gross. But refi closing costs ($2,500\u2013$3,500) come out of that. Net cash = $139,000\u2013$140,000.<\/p>\n<p><strong>Fix:<\/strong> Subtract 2% from refi proceeds for closing costs. Use the <a href=\"\/closing-costs-calculator\">closing costs calculator<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Targeting_Too_High_LTV_on_Investment_Property\"><\/span><span class=\"ez-toc-section\" id=\"3_Targeting_Too_High_LTV_on_Investment_Property\"><\/span>3. Targeting Too High LTV on Investment Property<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> 90% LTV on a rental = higher rate + PMI + thin equity cushion. One 5% market dip puts you underwater.<\/p>\n<p><strong>Fix:<\/strong> Target 75\u201380% max for investment. Higher LTV is for primary residence only.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Not_Checking_Lenders_LTV_Limit_Before_Appraisal\"><\/span><span class=\"ez-toc-section\" id=\"4_Not_Checking_Lenders_LTV_Limit_Before_Appraisal\"><\/span>4. Not Checking Lender&#8217;s LTV Limit Before Appraisal<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> You pay $500 for an appraisal expecting 75% LTV refi. Lender&#8217;s max is 70%. You get $9,500 less cash back than planned.<\/p>\n<p><strong>Fix:<\/strong> Confirm max LTV with lender BEFORE ordering appraisal. DSCR lenders typically allow 75\u201380%. Per <a href=\"https:\/\/www.fanniemae.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Fannie Mae<\/a>, conventional investment max is 75% for cash-out refi.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Confusing_LTV_with_CLTV\"><\/span><span class=\"ez-toc-section\" id=\"5_Confusing_LTV_with_CLTV\"><\/span>5. Confusing LTV with CLTV<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> If you have a first mortgage AND a HELOC, LTV uses only the first mortgage. CLTV (Combined LTV) includes both. Lenders may approve your first mortgage LTV but decline based on CLTV.<\/p>\n<p><strong>Fix:<\/strong> Disclose all liens. The <a href=\"\/ltv-calculator\">LTV calculator<\/a> computes single-loan LTV. For multiple loans, add them manually. Per <a href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\" target=\"_blank\" rel=\"noopener noreferrer\">FRED<\/a>, rising rates make high-CLTV refinancing increasingly difficult.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div itemscope itemtype=\"https:\/\/schema.org\/FAQPage\">\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"What_is_a_good_LTV_for_investment_property\"><\/span><span class=\"ez-toc-section\" id=\"What_is_a_good_LTV_for_investment_property\"><\/span>What is a good LTV for investment property?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:block\">\n<p itemprop=\"text\">75\u201380% for purchase, 75% for cash-out refinance. Below 80% avoids PMI. At 75%, you get the best rates and maximum BRRRR cash-out proceeds. Going below 70% is conservative \u2014 better cash flow but more capital tied up.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"How_does_LTV_affect_my_interest_rate\"><\/span><span class=\"ez-toc-section\" id=\"How_does_LTV_affect_my_interest_rate\"><\/span>How does LTV affect my interest rate?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Lower LTV = lower rate. Typical pricing: 75% LTV gets 0.25\u20130.50% better rate than 85% LTV. On a $200K loan, 0.25% difference = $500\/year in interest savings. Lenders price risk \u2014 less equity = more risk = higher rate.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"What_LTV_do_I_need_for_BRRRR_refinance\"><\/span><span class=\"ez-toc-section\" id=\"What_LTV_do_I_need_for_BRRRR_refinance\"><\/span>What LTV do I need for BRRRR refinance?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">75% is standard for cash-out refinance on investment property. On a $190K appraised value, 75% LTV = $142,500 loan. Some lenders offer 80% on rate-and-term refi (not cash-out). DSCR lenders may go to 80% cash-out but at higher rates. Use the <a href=\"\/ltv-calculator\">LTV calculator<\/a> to model proceeds at different LTV levels.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"Do_I_need_PMI_on_investment_property\"><\/span><span class=\"ez-toc-section\" id=\"Do_I_need_PMI_on_investment_property\"><\/span>Do I need PMI on investment property?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">At 80% LTV or below \u2014 no PMI. Above 80% \u2014 yes, if the lender allows it (many investment property lenders don&#8217;t go above 80%). PMI adds $50\u2013$200\/month depending on loan size and credit score. Most investors put 20\u201325% down specifically to avoid PMI.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_LTV_and_equity\"><\/span><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_LTV_and_equity\"><\/span>What is the difference between LTV and equity?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">They are inverses. LTV + Equity % = 100%. A property with 75% LTV has 25% equity. On a $200K property: 75% LTV = $150K loan = $50K equity. The <a href=\"\/ltv-calculator\">LTV calculator<\/a> shows both numbers.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Related_Calculators_and_Guides\"><\/span><span class=\"ez-toc-section\" id=\"Related_Calculators_and_Guides\"><\/span>Related Calculators and Guides<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"\/ltv-calculator\"><strong>LTV Calculator<\/strong><\/a> \u2014 Loan-to-value ratio<\/li>\n<li><a href=\"\/brrrr-calculator\"><strong>BRRRR Calculator<\/strong><\/a> \u2014 Cash-out refinance modeling<\/li>\n<li><a href=\"\/hard-money-loan-calculator\"><strong>Hard Money Calculator<\/strong><\/a> \u2014 Bridge financing costs<\/li>\n<li><a href=\"\/mortgage-calculator-investment\"><strong>Mortgage Calculator<\/strong><\/a> \u2014 Payment scenarios<\/li>\n<li><a href=\"\/cash-on-cash-calculator\"><strong>Cash-on-Cash Calculator<\/strong><\/a> \u2014 Return on cash<\/li>\n<li><a href=\"\/property-cash-flow-calculator\"><strong>Cash Flow Calculator<\/strong><\/a> \u2014 Monthly projections<\/li>\n<li><a href=\"\/closing-costs-calculator\"><strong>Closing Costs Calculator<\/strong><\/a> \u2014 Refi + purchase costs<\/li>\n<li><a href=\"\/arv-calculator\"><strong>ARV Calculator<\/strong><\/a> \u2014 After-repair value<\/li>\n<li><a href=\"\/dscr-calculator\"><strong>DSCR Calculator<\/strong><\/a> \u2014 Loan qualification<\/li>\n<li><a href=\"\/calculators\"><strong>All 30+ Calculators<\/strong><\/a><\/li>\n<\/ul>\n<p>Blog guides:<\/p>\n<ul>\n<li><a href=\"\/blog\/brrrr-strategy-guide\/\">BRRRR Strategy Explained<\/a><\/li>\n<li><a href=\"\/blog\/hard-money-calculator-how-to-use\/\">Hard Money Calculator Guide<\/a><\/li>\n<li><a href=\"\/blog\/investment-property-down-payment-guide\/\">Down Payment Guide<\/a><\/li>\n<li><a href=\"\/blog\/dscr-loans-guide-2026\/\">DSCR Loans Guide<\/a><\/li>\n<li><a href=\"\/blog\/investment-property-interest-rates\/\">Investment Property Interest Rates<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The LTV calculator tells you your loan-to-value ratio in 2 seconds \u2014 the number that determines your interest rate, whether you need PMI, and how much equity you can pull&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1003,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-1002","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides"],"_links":{"self":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/comments?post=1002"}],"version-history":[{"count":2,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1002\/revisions"}],"predecessor-version":[{"id":1008,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1002\/revisions\/1008"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media\/1003"}],"wp:attachment":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media?parent=1002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/categories?post=1002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/tags?post=1002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}