Easily calculate the downpayment, loan amount, and loan-to-value (LTV) for your dream home.
A down payment is the upfront payment you make when purchasing a home. It represents a percentage of the total home price. The larger your down payment, the smaller the loan amount you'll need to finance. Typically, a down payment ranges between 3% and 20% of the home’s purchase price.
The Loan Amount is the portion of the home price that you will finance through a mortgage. It is calculated as the difference between the total home price and the down payment amount. The smaller your down payment, the larger the loan amount will be.
Loan-to-Value (LTV) is a key metric used by lenders to assess the risk of a loan. It is calculated by dividing the loan amount by the home price. A higher LTV means you are borrowing more of the home’s value, which could result in higher interest rates or the need for private mortgage insurance (PMI).
For a $400,000 home with a 10% down payment:
- Down Payment = $400,000 x (10 / 100) = $40,000
- Loan Amount = $400,000 - $40,000 = $360,000
- Loan-to-Value (LTV) = ($360,000 / $400,000) x 100 = 90%