To calculate your loan-to-value ratio (LTV), divide your loan amount by the lesser of your appraised value or your sales price. If you borrow $80k on a $100k purchase, you’re at an 80% LTV. You can think of the LTV as the inverse of your down payment.

Lenders also calculate two other cousins to the LTV called a “combined loan-to-value” (CLTV) and “high combined loan-to-value” (HLTV). The CLTV takes into account the balance on a second mortgage. To calculate a CLTV add together the first and second mortgage balances and divide by the value. If you have a first mortgage of $80k and a second mortgage of $10k on a $100k property, you are at a 90% CLTV.

The HLTV takes into account the potential debt on a home equity line of credit (HELOC). To calculate the HLTV, add together the balance on the first mortgage and the credit limit on the HELOC and divide by the value. If you have a first mortgage of $80k and a home equity line of credit with a $20k limit on a $100k home, you are at a 100% HLTV (even if you owe zero on the home equity line).