U.S. Mortgage Index

Combined loan-to-value

Also called CLTV

Definition

Combined loan-to-value compares all mortgages and other loans secured by a property with the property’s value. CLTV is the acronym. It is broader than a first-lien loan-to-value ratio.

In plain English

Loan-to-value usually looks at one mortgage. Combined loan-to-value adds other liens on the same home—such as a second mortgage or HELOC—before dividing by value. The value figure may be an appraised value or another value the lender uses. This page does not set a maximum ratio.

Technical definition

CFPB defines loan-to-value as the mortgage amount compared with appraised value. Combined loan-to-value extends that idea to all secured loans on the property. CLTV is an alias, not a second page.

Why it matters

Piggyback structures and second mortgages cannot be read from first-lien LTV alone.

Example

Riley has a first mortgage and a second mortgage on the same house. Combined loan-to-value adds both unpaid balances and compares the total with the property’s value.

Sources reviewed