Loan-to-value ratio is one piece of the puzzle here ... your lender might look at a similar formula called the home equity combined LTV (HCLTV) ratio. This figure represents the total amount ...

The formula for an LTV ratio is the dollar amount of your loan divided by the value of the asset—in this case, a home. Calculating the LTV Ratio Calculating your LTV ratio is straightforward.

You can use this formula to calculate your loan-to-value ratio: LTV = (primary mortgage amount / home value) × 100 If your home is worth $500,000 and you owe $325,000 on your mortgage ...