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CLTV Mortgage

CLTV is short for combined loan to value ratio. This ratio implies a first and second mortgage over the property value. The CLTV is often used to determine if you are eligible to refinance your mortgage or to take out a home equity loan or a HELOC.

To understand CLTV, we will walk through an example. Suppose you have a property that is appraised at $200,000 and you have a first mortgage where you owe $120,000 and a second mortgage balance of $10,000.

Your CLTV is calculated as:

(1st Mortgage Balance + 2nd Mortgage Balance) / Property Value = CLTV

($120,000 + $10,000) / $200,000 = 65% CLTV


Mortgage companies have been quick to lend to borrowers with 100% CLTV, which means 100% financing. This has led to a huge blow-up among subprime mortgage companies such as New Century and HSBC.