Home Equity Calculator
Calculate your borrowing limits and project monthly payments for home equity loans
Results
Monthly Payment
$463.51
Loan Term: 15 yrs
LTV & Borrowing Power
Within LTV Limit
Current LTV
62.2%
Projected LTV
73.3%
LTV Limit: 80%Max borrowing: $80,000
Home Equity Breakdown
$280,000
$50,000
$120,000
Mortgage
New Loan/Line
Remaining Equity
Total Repayment
$83,431
Total Interest
$33,431
Remaining Equity
$120,000
Frequently Asked Questions
- Home equity is the portion of your property that you truly own. It is calculated by subtracting your current outstanding mortgage balance from the estimated market value of your home.
- A Home Equity Loan provides a lump sum with a fixed interest rate and fixed monthly payments. A HELOC (Home Equity Line of Credit) works like a credit card, offering a revolving credit line with a variable rate and interest-only payments during the draw period.
- Most lenders allow a maximum Loan-to-Value (LTV) or Combined Loan-to-Value (CLTV) ratio of 80% to 85%. This means your total combined mortgage debt cannot exceed 80-85% of your home's market value.
- Yes, but it is more challenging. Since home equity loans are secured by your property, lenders may approve you, but you will likely face higher interest rates and stricter LTV limits.
- When you sell your home, the sale proceeds are first used to pay off your primary mortgage, and then any outstanding home equity loans or HELOCs must be paid in full from the remaining balance.