This tool helps you estimate the amount you can borrow with a Home Equity Line of Credit (HELOC).
Use the above Home Equity Line of Credit (HELOC) Estimator to get an estimate of how much you might be eligible to borrow against your home’s equity. The HELOC amount is calculated based on your home’s estimated value, current mortgage balance, HELOC percentage, credit score, and annual income.
How to Use the Calculator:
1. Enter your home’s estimated current market value.
2. Enter your current outstanding mortgage balance.
3. Enter the percentage of your home’s value you wish to borrow (max 85%).
4. Enter your credit score.
5. Enter your annual income.
6. Click “Calculate” to get the estimated amount you can borrow.
How the Calculation is Done:
The calculator takes the following steps to estimate your HELOC:
- Calculate your home’s maximum borrowing potential based on the percentage you entered.
- Determine your available equity by subtracting your current mortgage balance from your home’s value.
- Account for your credit score and annual income to determine final HELOC eligibility.
Limitations:
This HELOC calculator provides an estimate only and should not be considered as a guaranteed loan offer. Actual loan amounts may vary based on the lender’s assessment of your creditworthiness, home value, and other financial factors.
Use Cases for This Calculator
Calculate Maximum HELOC Amount
Enter your home’s current market value and outstanding mortgage balance to estimate the maximum Home Equity Line of Credit (HELOC) amount you may qualify for based on factors like loan-to-value ratio and credit score.
Estimate Monthly HELOC Payment
Input the HELOC amount, interest rate, and loan term to calculate the estimated monthly payment. This will help you plan your budget and determine if the repayments fit your financial goals.
Determine Potential Tax Deductions
Based on your projected HELOC interest rate and the IRS guidelines, find out the potential tax deductions you may be eligible for when using the line of credit for home improvement purposes.
Explore Different Repayment Scenarios
Adjust the repayment term, interest rate, and additional payments to compare various scenarios and see how they impact the total interest paid and the duration to pay off the HELOC balance.
Assess Qualification Odds
Use your income, credit score, and debt-to-income ratio to assess your likelihood of qualifying for a HELOC and identify areas where you may need to improve your financial profile to secure better terms.
Plan for Future Expenses
Factor in potential future expenses, such as education costs or home renovations, by adding them to the existing HELOC balance to see how it impacts your overall debt and repayment schedule.
Compare HELOC vs. Other Loan Options
Compare the costs and benefits of a HELOC against other financing options like personal loans or credit cards by inputting the respective interest rates and fees to make an informed decision about which option suits your needs best.
Visualize Payment Schedule
View a detailed payment schedule that outlines the principal and interest payments over the loan term to better understand how your payments are allocated each month and track the progress in paying down the balance.
Get Insights on Equity Utilization
Understand how tapping into your home’s equity through a HELOC affects your overall financial picture by calculating the loan-to-value ratio and exploring different scenarios to optimize equity utilization.
Access Real-Time Rate Quotes
Get access to real-time HELOC interest rate quotes from partnering financial institutions to compare offers and find the most competitive rates available to help you save on interest costs over the life of the loan.