What is CLTV (combined loan-to-value)?
The one ratio that decides how big your HELOC can be, and a big part of what it costs.
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What is CLTV (combined loan-to-value)?
CLTV, or combined loan-to-value, is the total of every loan secured by your home divided by the home's value. For a HELOC, lenders add your mortgage balance to the full new credit line. Example: $300,000 owed plus a $100,000 line on a $500,000 home is 80% CLTV. Most HELOC lenders cap CLTV at 80%–85%. On the 9,601 HELOCs Shawn Way's team funded from January 2023 to October 2026, the median line equaled 18% of the home's value.
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The CLTV formula
CLTV = (first mortgage balance + all other liens on the home + new loan amount) ÷ appraised value × 100
"All other liens" means anything recorded against the property: a second mortgage, an existing HELOC, some solar or energy-improvement liens, and certain judgments. The value is the one the lender accepts, from an appraisal or an automated valuation, not your own estimate.
Turn it around and you get your borrowing limit: maximum new line = value × CLTV cap − existing liens. That's the math behind how much equity you need for a HELOC.
Use a free calculator, or get your HELOC rate from Shawn.
LTV vs. CLTV vs. HCLTV
Three related ratios show up in home lending. They differ in what goes on top of the fraction.
| Ratio | What it counts | Where you see it |
|---|---|---|
| LTV (loan-to-value) | Only the loan being made or measured, usually the first mortgage | Purchase and refinance loans, mortgage insurance rules |
| CLTV (combined loan-to-value) | All loans on the home. In first-mortgage underwriting, a HELOC counts at its drawn balance | Second mortgages, HELOCs, refinances with an existing second lien |
| HCLTV (high-credit CLTV) | All loans on the home, with any HELOC counted at its full credit limit | First-mortgage underwriting when a HELOC is in place |
When you apply for a new HELOC, the lender counts the full limit of the line you're asking for, so in practice HELOC lenders use the HCLTV-style number even when they call it CLTV. If you already have a HELOC and refinance your first mortgage, the new mortgage lender may look at both CLTV and HCLTV.
Worked examples
Examples only, with round numbers.
One home, two ratios
Home value $500,000. First mortgage $300,000. New HELOC line $100,000.
- LTV of the first mortgage: $300,000 ÷ $500,000 = 60%
- CLTV with the line: ($300,000 + $100,000) ÷ $500,000 = 80%
CLTV vs. HCLTV with an existing line
Same home, but you already have a $100,000 HELOC with $20,000 drawn, and you're refinancing the first mortgage.
- CLTV (drawn balance): ($300,000 + $20,000) ÷ $500,000 = 64%
- HCLTV (full limit): ($300,000 + $100,000) ÷ $500,000 = 80%
Finding your maximum line
Home value $650,000. First mortgage $410,000. A small solar lien of $15,000. Assume an 85% CLTV cap.
- Maximum total liens: $650,000 × 0.85 = $552,500
- Existing liens: $410,000 + $15,000 = $425,000
- Maximum line: $552,500 − $425,000 = $127,500
At an 80% cap the same home allows $520,000 − $425,000 = $95,000. The cap matters as much as the value.
How CLTV affects HELOC limits and pricing
- It sets the ceiling. The cap, usually 80%–85% for a primary home, decides the most you can borrow before income is even considered. Some lenders go to 90% or higher for strong credit, at higher rates.
- It moves your margin. Lenders price HELOCs as prime plus a margin, and the margin is set partly by CLTV. A line that keeps you under about 70% CLTV usually prices better than one near the cap. See what a good HELOC margin is.
- It interacts with credit. Lower scores often mean a lower allowed CLTV. A borrower near the minimum score of 620 may be offered less of the home's value than a borrower with a 760.
- Property type changes the cap. Second homes and rentals usually cap lower than primary homes. See HELOCs on investment property.
- It can change later. If values fall sharply, a lender may freeze or reduce an open line. See can a lender freeze your HELOC.
How to lower your CLTV
- Ask for a smaller line than the maximum.
- Pay down the first mortgage or pay off a small lien before applying.
- Make sure the valuation reflects recent comparable sales and any upgrades.
Check your own CLTV
Plug your value and balances into the how much can I borrow calculator, and compare typical margins on the HELOC rates page. To see your own numbers, get your HELOC rate from Shawn. A HELOC is secured by your home, rates can change, and nothing here is an offer of credit.
Related question: High-LTV HELOCs
Related question: How to calculate home equity
Questions people ask
What is a good CLTV for a HELOC?
A CLTV under about 70% usually gets the best HELOC pricing. Anything up to the lender's cap, often 80%–85%, is generally approvable if your credit and income qualify.
What is the difference between LTV and CLTV?
LTV measures one loan against the home's value. CLTV adds every loan secured by the home, including a second mortgage or HELOC.
Does CLTV include the full HELOC limit or just the balance?
For a new HELOC, lenders count the full limit. In first-mortgage underwriting, CLTV counts the drawn balance and HCLTV counts the full limit.
Can CLTV be over 100%?
Yes, if you owe more than the home is worth. HELOC lenders won't lend in that case, because there is no equity to secure the line.
Do property taxes or HOA dues count in CLTV?
Not normally. CLTV counts loans and liens. An unpaid tax bill that becomes a recorded lien would count, and lenders usually require it be paid.
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Sources
Official sources behind this guide.
- What is the difference between a home equity loan and a HELOC? · Consumer Financial Protection Bureau
- What you should know about home equity lines of credit (booklet, PDF) · Consumer Financial Protection Bureau
- Regulation Z §1026.40: Requirements for home equity plans · Consumer Financial Protection Bureau