Question: how to calculate 80 percent of home value?
Answer: As an example, assume you want to buy a home with a fair market value of $100,000. You have $20,000 available for a down payment, so you'll need to borrow $80,000. Your LTV ratio would be 80% because the dollar amount of the loan is 80% of the value of the house, and $80,000 divided by $100,000 equals 0.80 or 80%.