Loan To Value Ratio For Refinancing Calculator

Refinancing your mortgage is a financial decision that can have a significant impact on your overall loan structure. Understanding the Loan To Value (LTV) ratio is crucial when considering refinancing options. Our Loan To Value Ratio For Refinancing Calculator simplifies this process for you.

Formula: The Loan To Value (LTV) ratio is calculated using the formula: ���=(Existing Loan Amount−New Loan AmountCurrent Property Value)×100LTV=(Current Property ValueExisting Loan Amount−New Loan Amount​)×100

How to use:

  1. Enter the current value of your property in dollars.
  2. Input the existing loan amount.
  3. Enter the new loan amount you are considering for refinancing.
  4. Click the “Calculate” button to determine the Loan To Value (LTV) ratio.

Example: Suppose your current property value is $300,000, the existing loan amount is $200,000, and the new loan amount is $180,000. After clicking “Calculate,” the result will show an LTV ratio of 6.67%.


  1. What is the Loan To Value (LTV) ratio? The LTV ratio is a financial metric that represents the percentage of the property value covered by a mortgage.
  2. Why is the LTV ratio important in refinancing? Lenders use the LTV ratio to assess the risk of a mortgage, and a lower ratio often leads to better refinancing terms.
  3. Is a higher or lower LTV ratio better when refinancing? A lower LTV ratio is generally better as it indicates less risk for the lender, potentially resulting in more favorable refinancing terms.
  4. Can the LTV ratio affect my interest rate during refinancing? Yes, a lower LTV ratio may lead to a lower interest rate as it is perceived as a lower risk for the lender.
  5. What is a good LTV ratio for refinancing? A good LTV ratio is typically below 80%, but the ideal ratio can vary based on lender requirements and market conditions.
  6. Does the calculator consider additional costs in refinancing? No, this calculator focuses on the basic LTV ratio calculation and does not account for additional costs involved in refinancing.
  7. Can I use this calculator for commercial properties? This calculator is designed for residential properties, and results may not be accurate for commercial properties.
  8. What is the significance of a negative LTV ratio? A negative LTV ratio is not meaningful in the context of mortgage refinancing.
  9. Can I refinance with a high LTV ratio? It is possible, but a higher LTV ratio may result in less favorable refinancing terms.
  10. Does the calculator provide information on loan eligibility? No, this calculator focuses solely on calculating the LTV ratio and does not determine loan eligibility.

Conclusion: Understanding the Loan To Value (LTV) ratio is essential when exploring refinancing options. Our calculator simplifies the process, allowing you to make informed decisions about your mortgage. Consider factors such as interest rates, terms, and the impact of your LTV ratio to make the best choice for your financial situation.

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