Is LTV the same as equity?

They are related. Equity is the portion you own. If LTV is 90%, you have about 10% equity at that valuation (before selling costs).

What LTV avoids PMI on conventional loans?

A loan at 80% LTV or below (20% down on the value used for the loan) often avoids borrower-paid PMI on many conventional loans. Lender programs vary.

What Is Loan-to-Value Ratio?

LTV compares your loan balance to the home value. Above 80% LTV, many conventional borrowers pay PMI.

Published August 28, 2026

Loan-to-value ratio (LTV) compares how much you owe on the mortgage to the home's value. Lenders use it to gauge risk. On many conventional loans, LTV above 80% is when PMI enters the picture.

LTV = Loan amount ÷ Home value

Why LTV matters beyond PMI

Lower LTV often means better rate quotes and more loan options. A larger down payment reduces the amount you borrow and the interest you pay over time. The down payment guide walks through those tradeoffs.

Original value vs current value

PMI cancellation rules on many conventional loans refer to the home's original value at closing, not what Zillow says today. Market appreciation can improve your real equity, but servicers may still use original value unless you qualify for an appraisal-based review.

Check your LTV with the PMI calculator using your home price, down payment, and quoted PMI rate.

Calculators for this topic

PMI Calculator — Estimate your private mortgage insurance cost and find out your loan-to-value ratio.
Mortgage Calculator — Calculate your estimated monthly mortgage payment including principal, interest, taxes, insurance, PMI, and HOA fees.
Mortgage Affordability Calculator — Estimate how much house you may be able to afford based on your income, debts, and financial goals.

Frequently Asked Questions

: They are related. Equity is the portion you own. If LTV is 90%, you have about 10% equity at that valuation (before selling costs).
: A loan at 80% LTV or below (20% down on the value used for the loan) often avoids borrower-paid PMI on many conventional loans. Lender programs vary.

Sources

Consumer Financial Protection Bureau: What is PMI?

Educational information only — not financial, legal, or tax advice. Financial disclaimer.