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What is a combined loan-to-value (CLTV) ratio?

April 26, 2017cltv combined loan-to-value ratio

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What is a combined loan-to-value (CLTV) ratio?

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Your combined loan-to-value-ratio (CLTV) is simply your combined mortgage balances divided by the value of your home. For example, assume that your home is worth $200,000 and you owe $100,000 on your first mortgage. If you take out a $50,000 home equity loan, and add it to your existing mortgage loan balance of $100,000, your combined balance would be $150,000. The $150,000 of mortgages divided by the home’s fair market value of $200,000 means your CLTV is 75%.