Home Equity Line of Credit Calculator
Available Equity
Maximum HELOC Amount
Interest-Only Payment
Full Repayment
How to Use This HELOC Calculator
Enter Your Home Value
Input the current market value of your home. For an accurate estimate, consider recent appraisals or comparable sales in your area.
Enter Your Mortgage Balance
Input the remaining balance on your primary mortgage. This can be found on your most recent mortgage statement.
Adjust the LTV Ratio
The Loan-to-Value (LTV) ratio determines how much of your home's value you can borrow against. Most lenders offer between 75-90% LTV.
Set Interest Rate and Terms
Input the current HELOC interest rate and adjust the draw and repayment periods to match lender offerings.
Review Your Results
The calculator will show your available equity, maximum HELOC amount, and estimated monthly payments during both the draw and repayment periods.
Understanding Home Equity Lines of Credit (HELOCs)
What is a HELOC?
A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home's equity. Unlike a home equity loan that provides a lump sum, a HELOC works more like a credit card, allowing you to borrow only what you need, when you need it, up to your approved credit limit.
How HELOCs Work
HELOCs typically have two phases: the draw period and the repayment period. During the draw period (usually 5-10 years), you can borrow funds as needed and make interest-only payments. Once the draw period ends, the repayment period begins (typically 10-20 years), during which you can no longer borrow and must repay both principal and interest.
Common Uses for HELOCs
- Home improvements and renovations
- Debt consolidation
- Education expenses
- Emergency funds
- Major purchases
Advantages of HELOCs
- Flexible borrowing options
- Potentially lower interest rates than credit cards or personal loans
- Interest may be tax-deductible when used for home improvements
- Access to large amounts of credit
Considerations Before Getting a HELOC
- Your home serves as collateral, putting it at risk if you can't repay
- Variable interest rates can increase over time
- Potential for fees, including application, annual, and early termination fees
- Temptation to overspend with easy access to credit