HELOC & Home Equity Calculator

Lenders multiply your home value by their maximum CLTV (often 80% to 85%) and subtract your existing mortgage balance. On a $600,000 home with a $300,000 mortgage at 80% CLTV, your maximum line is $180,000. Underwriting on income, credit and reserves can reduce that figure.

It depends on your first mortgage rate. If your current rate is well below market, a HELOC preserves it and only prices the new borrowing, which is usually cheaper overall. If you want a single fixed-rate loan for a large sum and can lower your blended rate, cash-out refinancing wins.

Your line converts to a repayment schedule that amortizes principal and interest over the remaining term. The payment typically rises sharply because you are now paying down principal as well as interest, and no new draws are allowed.

Most are variable, tied to the prime rate with a margin. Many lenders offer a fixed-rate conversion for part of the balance or a fixed-rate draw option. Given prime-rate exposure, assume your payment can rise and stress-test at +2%.

Only when the proceeds are used to buy, build or substantially improve the home securing the loan, and only on balances up to $750,000 of total acquisition debt. Using a HELOC to pay off credit cards or fund a vacation makes the interest non-deductible personal interest.

Yes. Lenders may suspend or reduce a line if the value of your home declines significantly, your financial circumstances deteriorate, or in some cases at their discretion under the contract. A frozen line still must be repaid on its original schedule.

Most approvals start around 620, with the best pricing at 740 or above. Below 680 expect a higher margin, a lower CLTV cap and possibly a requirement for a full appraisal rather than an automated valuation.

Typically 2 to 6 weeks. Timelines depend on whether a full appraisal is required, how quickly title work clears, and the lender's capacity. Many lenders offer a rate-lock option during processing so a market move does not derail the file.

Enter what you will actually draw, not the size of the line. Interest is charged on the outstanding balance, so a $150,000 line with $40,000 drawn costs $283 a month at 8.5%, not $1,062. The calculator shows both figures so you can see the cost of using the whole line.

The rate on a variable HELOC rises with prime, so the interest-only payment and the eventual repayment payment both rise. On a $100,000 balance, two points adds about $167 a month during the draw period and more than that in repayment, because the higher rate also lengthens the effective payback. The rate stress table in the calculator prices +1 and +2 points side by side.

Often minimal — many lenders waive them, then recoup through an early-closure fee (commonly $300 to $500) if you pay the line off or close it within 2 to 3 years. Read the fee schedule before you sign, not after.

A home equity loan gives you a lump sum with a fixed rate and fixed repayment schedule. A HELOC is a revolving line with a variable rate and interest-only draw period. Choose fixed if you need certainty; choose revolving if you need flexibility over timing.

Most planners suggest keeping combined LTV at or below 80% and holding 6 to 12 months of expenses in reserves. Borrowing to your maximum removes your buffer at exactly the moment home values or income could move against you.

Yes, and most lines have no prepayment penalty on the balance itself, though early-closure fees may apply if you terminate the account within the first few years. Paying during the draw period is the single most effective way to shrink the repayment shock.