How to Calculate a CLTV

CLTV is the Combined Loan to Value Ratio.
CLTV is the Combined Loan to Value Ratio. (Image: accounts image by Alexey Klementiev from

CLTV or Combined Loan To Value ratio is an index of risk that lenders often use when a prospective buyer has more than one loan against his property. According to Kennedy Funding, "The acceptable CLTV will vary based on the lender and situation, but may in fact, under the right circumstances, exceed 100 percent. But of course, a lower CLTV will qualify you for more programs and a better interest rate."

Add the remaining balance on your primary home mortgage to the sum of all the other financing you have taken against the property. For example, you owe $120,0000 on your primary home loan, and you have a $20,000 home equity loan. Add the two together for a total of $140,000 in loans.

Divide the amount you owe by the value of your property. Continuing the example, if the value of your property is $170,000, you divide $140,000 into $170,000.

Figure the CLTV as a percentage. In our example, $140,000 divided by $170,000 is .82. The CLTV in the example is 82 percent.

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