Combined loan-to-value (CLTV).
In plain English
Combined loan-to-value, or CLTV, extends the loan-to-value idea to every loan against a property at once. Where LTV measures a single mortgage against the home's value, CLTV adds the first mortgage, any second mortgage, and any home equity loan or line of credit, then divides the total by the home's value. Lenders use it to see your full leverage before approving another loan, since a high CLTV means little equity cushion. Most lenders cap CLTV, often around 80 to 90 percent, when you take out a home equity loan or a piggyback second mortgage.
01Why it matters
CLTV is the number a lender checks before letting you borrow more against your home, so it sets the ceiling on a home equity loan or a second mortgage.
02The math, step by step
Your home is worth 400,000 dollars. A first mortgage of 280,000 dollars plus a 40,000 dollar home equity line is 320,000 dollars of debt, a CLTV of 80 percent (320,000 divided by 400,000).
03What this is NOT
CLTV is NOT just your primary mortgage. It adds every loan secured by the home, so it is higher than the LTV of the first mortgage alone whenever a second loan exists.
04Receipts
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