How to Calculate Loan to CLTV
The cumulative-loan-to-value is the sum of all mortgage loans secured by a property divided by the appraised value of the property. If you do not have multiple mortgage loans on your property, your property's loan-to-value will equal the CLTV. Lenders commonly use the CLTV ratio to underwrite and approve new mortgage loans. Many loan programs have both a maximum LTV and a maximum CLTV for qualification purposes.
Other People Are Reading
Instructions
-
-
1
Determine the appraised value of your property. For example, assume your property was appraised for $250,000.
-
2
Determine the current balance of all mortgage loans secured by the property. For example, assume you have a first mortgage for $150,000 and a second mortgage for $50,000. In this case, $150,000 + $50,000 = $200,000.
-
-
3
Divide the current mortgage balance of all mortgage loans secured by the property by the appraised value for the property. Continuing the same example, $200,000 / $250,000 = 80 percent. This figure represents the CLTV for the property.
-
1
References
- "Principles of Finance"; Scott Besley and Eugene Brigham; 2008
- Bills.com: LTV - Loan-to-Value Ratio Definition and Data
