The combined loan-to-value (CLTV) ratio calculator above is used for mortgage refinance. This CLTV ratio calculator can help you calculate the combined loan-to-value (CLTV) ratio. Enter your first mortgage loan balance, the balance of your home equity line of credit, and the balance of other mortgage loans you take out and use the home as security or collateral, then enter the current market value of your home, click "Calculate" button to get your combined loan-to-value (CLTV) ratio. 

The loan-to-value (LTV) ratio is loan amount expressed as a percentage of home value. Lenders base home value on the lesser of the purchase price and the appraised market value. For example, if the purchase price is $100,000, and the appraised value is $95,000, lenders will usually use $95,000 as home value for the calculation of LTV ratio. If there are more than one mortgage loan on the home, the combined loan-to-value (CLTV) ratio will be used and can be calculated using the combined loan amount divided by the home value. For example, if a borrower has a mortgage loan of $80,000 for a house worth $100,000, the LTV ratio will be $80,000/$100,000 or 80%. If a borrower has two mortgage loans ($80,000 of the first mortgage and $5,000 of the second mortgage) for a house worth $100,000, the combined loan-to-value (CLTV) ratio will be $85,000/$100,000 or 85%.

The loan-to-value (LTV) ratio is one of the key loan qualification factors that lenders will look at when making lending decisions. Lenders often require the borrower with LTV ratio above 80% to purchase private mortgage insurance (PMI). PMI adds significant cost to home financing. To remove PMI, the borrower needs to bring LTV ratio down to 80% or less.