# How to Get the Loan-To-Value Ratio on Equity Loan

Home equity loans allow you to tap into the equity you've built in your home, whether the equity comes from paying down your mortgage or because your home has appreciated in value. When lenders calculate the loan-to-value ratio for a home equity loan, they take into account the outstanding balance on your mortgage and any other debt secured by the home. Knowing your current LTV ratio allows you to know how much additional debt you could take on based on your home's value, should you need it, or how easy it would be to refinance. If you're just doing informal calculations, you can estimate your home's value. But, before offering you a new loan or refinance, a lender will likely want a home appraisal.

Step 1

Check your most recent mortgage statement and home equity loan statement to find out the balance on each loan.

Step 2

Add the balances of your mortgage and your home equity loan to calculate the total debt secured by the home. For example, if you owe \$200,000 on your mortgage and \$60,000 on your home equity loan, your total debt is \$260,000.

Step 3

Divide the debt secured by your home by the value of your home to figure your LTV ratio as a decimal. In this example, if your home is worth \$400,000, divide \$260,000 by \$400,000 to get 0.65.

Step 4

Multiply the result by 100 to calculate your LTV ratio as a percentage. Finishing the example, multiply 0.65 by 100 to get 65 percent.