Calculate fixed-rate home equity loan payments and borrowing power
This home equity loan calculator helps you determine your borrowing power based on your home value and existing mortgage balance. A home equity loan provides a lump sum at a fixed rate, making it ideal for major expenses like renovations. Home equity loans provide a lump sum at a fixed rate, making them ideal for large one-time expenses such as home renovations, debt consolidation, or major purchases. This calculator helps you understand your borrowing power, CLTV ratio, and monthly payment before applying.
The calculator uses the standard amortization formula for the loan amount and computes the combined loan-to-value ratio.
Most lenders prefer a combined loan-to-value ratio of 80% or less. A lower CLTV means more equity and better loan terms.
A home equity loan provides a lump sum at a fixed rate with fixed payments, while a HELOC is a revolving line of credit with variable rates.
Most lenders allow you to borrow up to 80% of your home value combined with your existing mortgage (80% CLTV). Your available equity is your home value minus your current mortgage balance.
A home equity loan provides a lump sum at a fixed rate with fixed monthly payments. A HELOC is a revolving line of credit with a variable rate, allowing you to draw funds as needed.
Interest on home equity loans may be tax deductible if the funds are used to buy, build, or substantially improve your home. The TCJA of 2017 limited deductibility for other purposes.
Most lenders require a credit score of at least 620 for home equity loans, with scores of 680 or higher qualifying for the best rates. Your debt-to-income ratio should typically be below 43%.