Home Equity
Calculate home equity loan or HELOC payments
Calculators on this site provide estimates for general informational purposes only. They are not financial, investment, tax, or legal advice. Consult a qualified professional before making any decision.
How to use Home Equity
- 1Enter your home's current market value and the total balances of any mortgages or liens.
- 2Pick the loan-to-value limit your lender allows, often 80 to 85 percent.
- 3Read the usable equity and the maximum home-equity loan or line of credit available.
What home equity means
Equity = Home value - Outstanding mortgage; Usable = Equity x LTV limitEquity is the portion of the home you own outright. It grows as you repay the mortgage and as the property's market value rises.
Lenders usually let you borrow only a fraction of equity to keep a safety buffer, and they require an appraisal to confirm the current value.
Frequently asked questions
What is the difference between a HELOC and a home-equity loan?
A HELOC is a revolving line you draw from as needed; a home-equity loan is a lump sum with fixed payments.
Can I lose my home?
Yes. Both are secured by the property, so missed payments can lead to foreclosure. Borrow only what you can repay.
Is the interest tax deductible?
Interest on money used for substantial home improvements may be deductible in some jurisdictions; consult a local tax professional.
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