Loan-To-Value Calculator
Calculate your loan-to-value and combined LTV from property value and mortgage balances. See your equity position and what it means for a 1031 exchange.
Use the appraised value rather than what you paid. For a refinance or a sale, the lender underwrites against the current appraisal, not the original purchase price.
In a 1031 exchange, the replacement property generally must carry debt equal to or greater than the $540,000 of debt on the property you sell, or you make up the difference with additional cash. Otherwise the shortfall is treated as mortgage boot and can be taxable. Many DSTs are offered at a fixed LTV so investors can match their replacement debt to the property being relinquished.
Educational estimate only. Lender LTV limits, PMI rules, and 1031 boot treatment vary by loan program and by your specific situation. Confirm with your lender, CPA, and qualified intermediary.
LTV ratio
The primary mortgage balance divided by the appraised value. 80% is the line most conventional lenders use for private mortgage insurance. A lower LTV generally means better loan terms and more refinancing flexibility.
Combined LTV
All debt against the property, including a second mortgage or HELOC, divided by the appraised value. This is the figure that actually reflects how leveraged the property is, and what a 1031 replacement needs to match.
Mortgage boot
In a 1031 exchange, if the replacement property carries less debt than the property you sold, the shortfall is treated as taxable boot unless you cover it with additional cash. Knowing your current debt sets the target.
Planning an exchange?
We can walk through how your current debt maps to a replacement property, including DST offerings structured at a fixed loan-to-value so the debt matches without extra cash out of pocket.