# How to Calculate HELOC LTV (And Other Things To Know)

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Simple facts: how to calculate a HELOC LTV, and more.

The #1 consideration when you start looking for a HELOC is, by a landslide, the loan-to-value.

LTV should be your priority for one simple reason: the more money you can get, the more you can do with real estate investing.

Depending on the property type, you’ll find that your bank or credit union will give you an LTV of somewhere between 70 and 90% in this market. In other markets, they’ve gone up to 100% loan-to-value.

## Example of  How To Calculate LTV on a HELOC

Let’s say you own a property worth \$400,000. You found a credit union that will give you a 70% LTV on a HELOC to buy an investment property.

Here’s the simple calculation:

\$400,000  ×  .70  =  \$280,000

So, they’ll allow \$280,000 in a HELOC on that property.

If they offered an 80% LTV on the same home, then you’d get a HELOC with \$320,000. At 90% LTV, you’d get \$360k.

## But What Is CLTV?

However, HELOC LTVs are a bit different than typical loans – after all, there’s already a first lien or mortgage on the property.

In this case, they look at a combined loan-to-value (CLTV) instead.

As an example, let’s say that property worth \$400,000 has a mortgage that’s \$270,000.

So here’s what the credit union will do for a CLTV:

• They know their 70% LTV would give you \$280k.
• But since you still owe \$270k, they’ll subtract that amount from your available LTV.
• Therefore, you’ll end up with \$10,000 for a HELOC.