Home Equity Loan Calculator
Estimate available equity, combined loan-to-value, fixed payment, interest, and closing costs.
How home equity and CLTV are calculated
Current nominal equity equals the estimated home value minus the mortgage balance. Combined loan-to-value (CLTV) divides the current mortgage plus the proposed home equity loan by the home value.
The maximum new loan under the selected CLTV assumption equals home value multiplied by that limit, minus the current mortgage balance. This is an estimate, not a lender commitment.
Fixed home equity loan payment
A home equity loan typically provides a lump sum with a fixed payment. This calculator uses the standard amortization formula for the entered APR and term. If closing costs are financed, they increase the loan principal and its interest; otherwise they appear as upfront cash.
Home equity loan versus HELOC
This tool models a fixed, fully amortizing lump-sum loan. It does not model a home equity line of credit (HELOC), which may have a variable rate, changing draws, an interest-only draw period, and a later repayment period. Those cash-flow rules require a separate calculation.
Example
A $500,000 home with a $300,000 mortgage has $200,000 of nominal equity. At an 80% maximum CLTV assumption, total secured debt is limited to $400,000, leaving an estimated maximum new loan of $100,000 before lender-specific adjustments.
Important limits
Actual lending limits may be lower because of appraisal, credit, income, lien position, property type, fees, minimum draws, and lender policies. Nominal equity is not necessarily borrowable equity. The estimate excludes taxes, insurance, legal advice, and any effect on the first mortgage.
Related calculators
- Mortgage Refinance Calculator — compare replacing the first mortgage.
- Mortgage Payoff Calculator — measure extra payments on the current mortgage.
- Mortgage Affordability Calculator — estimate a home-purchase budget.
Variable credit line: model an interest-only draw period, a later amortizing repayment period, and separate rate assumptions with the HELOC Calculator.