how is ltv calculated 
loan to value ltv is calculated simply by taking the loan amount and dividing it by the value of the asset or collateral being borrowed against in the case of a mortgage this would be the mortgage amount divided by the property s value the bottom linea loan to value ratio typically represents the amount of a mortgage compared to the property s value an 80 ltv for example would mean a mortgage equal to 80 of the property s value borrowers often can get better terms on their mortgages with lower ltvs because they require higher down payments the more money borrowers can put down the less likely it becomes that they will be a risk in the eyes of lenders mortgages with ltvs higher than 80 usually require private mortgage insurance which adds an additional cost to monthly payments 