LTV (Loan-to-Value)
Loan balance divided by property value — controls whether PMI is required.
Why it matters
On a conventional mortgage, LTV above 80% typically requires private mortgage insurance (PMI). Below 80% removes PMI. LTV is recalculated after appraisal on refinances and after home-value increases on request.
See also
Educational only — not financial, tax, or legal advice.