Determining required appraised value
To calculate the appraised value needed, add the balance of the first lien and the new lien's full line/loan amount. Then, divide the total by the CLTV %, and you’ll have your desired appraised value.EX: $200,000 (balance on first) + $200,000 (full second lien) = $400,000 $400,000 divided by .80 (desired CLTV is 80%), = $500,000 required appraised value.