The Calculator App
Home Equity
Estimate equity, max borrow, and HELOC or home equity loan payments. This is not a lender offer or a rate quote.
$125,000.00
Max borrow on defaults with CLTV after draw 70.00%. Draw payment $354.17. Not a quote.
How this home equity estimate works
You enter home value, mortgage balance, a maximum CLTV, product type, draw amount, rate, and draw and repay terms. The page estimates how much you could borrow, payments in each phase, total interest, and an annual schedule. Credit band notes are illustrative only.
Draw, repay, and payment shock
During draw, a HELOC payment here is interest-only on the drawn balance. Repayment amortizes that balance over the years you enter. The jump from draw to repay payment is shown explicitly because it surprises many borrowers.
Questions
- How does a HELOC draw period work?
- Many HELOCs let you borrow up to a limit, then require interest-only payments on the amount drawn during an initial draw period. When that period ends, you can no longer draw and must repay the balance over a repayment term. This page models the full draw on day one at the rate you enter unless you choose a fixed home equity loan.
- What is combined loan-to-value (CLTV)?
- CLTV is the total of your existing mortgage plus the new borrowing, divided by home value. Lenders set a maximum CLTV. Above about 80% CLTV, terms often tighten and this page flags the status as tight or over the comfort zone you set.
- How are variable rates handled?
- You enter one fixed rate for the entire illustration. The sensitivity table shifts that rate up and down to show payment and interest risk. It does not fetch an index or margin from a lender.
- HELOC vs home equity loan vs cash-out refinance?
- A HELOC usually has a draw phase and a variable rate in real life. A fixed home equity loan amortizes once. Cash-out refinance replaces the first mortgage with a larger loan and has its own closing costs. The product comparison uses simplified assumptions and is not a recommendation.
- What are the risks?
- These products use your home as collateral. If you cannot pay, foreclosure is possible. Payment shock when a HELOC enters repayment and rate increases on variable lines are common planning concerns. This calculator does not approve credit or guarantee terms.