LTV math that keeps every loan and value base honest.
Solve first-mortgage LTV, combined LTV, loan amount, buyer cash, low-appraisal, and reverse-value questions with every step visible.
LTV = first mortgage / value. CLTV = all secured debt / value. Choose the correct value basis first, then multiply or divide based on the final ask.
This ratio uses the first mortgage only.
Add the first mortgage and subordinate financing before dividing.
Convert the percentage to a decimal before multiplying.
This is cash toward price, not closing costs or total cash to close.
Keep the first mortgage, total financing, and buyer cash separate.
Choose the final ask before selecting the numbers and operation.
Use the base stated in the question. Lower-of logic is a common conventional purchase convention, not a rule for every loan.
Included in CLTV. In purchase modes, this calculator treats it as financing the price. Enter 0 if none.
LTV is the first mortgage divided by the value basis. CLTV is total debt secured by the property divided by that value basis.
The lower-of-price-or-appraisal choice is a common conventional purchase setup. Follow a question that names another base.
Buyer cash toward price equals purchase price minus all entered financing. Closing costs and prepaid items are separate.
This is exam math, not mortgage approval or affordability advice. Credit, income, loan program rules, and lender calculations can change a real result.
The calculator keeps full precision and rounds displayed dollar amounts to cents and ratios to four decimal places when needed. Pearson VUE says to use standard rounding when applicable. A lender may use product-specific underwriting and rounding rules.
Email this LTV setup for later review.
Keep the value basis, loan amounts, ratios, and buyer cash in one place.
Try five LTV traps without the calculator.
A $320,000 first mortgage uses a $400,000 value basis. What is the LTV?
Name the denominator before calculating.
Most mistakes come from using the wrong value or stopping at the wrong answer type.
The question gives one value
Use the value it gives. Do not invent an appraisal or force lower-of logic when only one ratio base exists.
The question gives price and appraisal
Check the wording. The lower value is common for conventional purchase LTV, but a question can explicitly name purchase price or appraised value as the base.
The question gives a second secured loan
Keep first-mortgage LTV and CLTV separate. Add both loans for CLTV and subtract both from price when finding buyer cash.
The question works backward from loan and LTV
Divide loan by the LTV decimal. The answer is an implied value basis, not automatically a contract price or appraisal.
Four patterns worth knowing cold.
Direct, forward, low-appraisal, and two-loan setups cover the most useful exam variations.
$320,000 first mortgage and $400,000 value
Loan goes on top of the fraction. Value goes on the bottom.
$400,000 value at 75% LTV
Multiply when value and LTV are known.
$400,000 price, $390,000 appraisal, 80% lower-of-value LTV
The cash percent is 22% of price, not the simple 20% shortcut.
$320,000 first mortgage, $20,000 second loan, $400,000 value
The first-mortgage LTV remains 80% while CLTV is 85%.
Four details that protect the answer.
Loan divided by value
Flipping the fraction turns an 80% LTV into 125%, a common distractor.
Lower-of is common, not universal
Fannie Mae commonly uses the lower of sales price or current appraised value for purchase LTV, but exceptions and other loan programs exist. Follow the question and product rule.
LTV and CLTV are different
First-mortgage LTV ignores subordinate debt. CLTV includes total debt secured by the property.
Down payment is not cash to close
Buyer cash toward price excludes closing costs, prepaid items, reserves, credits, and other settlement adjustments.
Connect property ratios to the rest of the math.
How do you calculate LTV?+
Divide the first-mortgage amount by the value basis and convert the decimal to a percentage. A $320,000 first mortgage divided by a $400,000 value basis is 80% LTV.
How do you calculate a mortgage amount from LTV?+
Multiply the value basis by the LTV decimal. A $400,000 value at 75% LTV produces a $300,000 first mortgage.
What is the difference between LTV and CLTV?+
LTV usually compares the first mortgage with value. CLTV compares total debt secured by the property, including subordinate financing, with value. A $320,000 first mortgage plus a $20,000 second loan on $400,000 value is 80% first-mortgage LTV and 85% CLTV.
Do I always use the lower of purchase price or appraised value?+
No. The lower amount is a common conventional purchase LTV convention, but it is not universal. Use the rule stated in the exam question or applicable loan program. If the question explicitly names purchase price or appraised value as the denominator, use that named base.
Is down payment percent always 100% minus LTV?+
Only in the clean case where purchase price equals the value basis and there is no subordinate purchase financing. A low appraisal or second loan breaks that shortcut. Calculate buyer cash from purchase price minus all purchase financing.
Does buyer cash toward price include closing costs?+
No. This calculator's buyer-cash result covers the purchase price only. Closing costs, prepaid taxes and insurance, lender credits, seller credits, earnest money, and reserves belong in a full cash-to-close calculation.
Why might a lender show a slightly different LTV?+
Lenders can apply program-specific definitions and rounding conventions. This study calculator keeps full precision, then displays standard rounding for exam practice. Follow the lender's documents for a real transaction.
Is this a mortgage approval or affordability calculator?+
No. It checks property-ratio arithmetic for exam preparation. Real approval can depend on credit, income, debt-to-income ratios, property type, mortgage insurance, loan limits, program rules, and lender overlays.