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HELOC Calculator

HELOC Calculator

Calculate your Home Equity Line of Credit potential with our comprehensive HELOC calculator. Estimate credit limits, available funds, and understand the approval process.

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HELOC Calculator
Enter your property and financial details to estimate your HELOC potential

Current market value of your property

Used for regional lending policies

Total debt against the property (mortgages, liens)

Amount you want to borrow

Affects lending terms and LTV limits

Amount to withdraw at closing

Loan-to-value ratio varies by lender and property type

HELOC Examples
Click on any example to automatically fill the calculator
Example

Typical homeowner scenario

Property Value: $500,000
Outstanding: $200,000
Desired Credit: $150,000
Initial Draw: $50,000
Example

High-value property example

Property Value: $750,000
Outstanding: $300,000
Desired Credit: $200,000
Initial Draw: $75,000
Example

Moderate equity situation

Property Value: $350,000
Outstanding: $150,000
Desired Credit: $100,000
Initial Draw: $25,000
Example

High equity, large credit need

Property Value: $600,000
Outstanding: $100,000
Desired Credit: $250,000
Initial Draw: $100,000
What is a HELOC?

A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home's equity. Unlike a traditional loan, you can borrow and repay funds as needed during the draw period.

Key Features:

  • Revolving Credit: Borrow, repay, and borrow again
  • Variable Rate: Interest rates typically adjust with market rates
  • Draw Period: Usually 10 years to access funds
  • Repayment Period: 10-20 years to repay the balance

Formula: Max HELOC=(Property Value×LTV)−Outstanding Balance\text{Max HELOC} = (\text{Property Value} \times \text{LTV}) - \text{Outstanding Balance}

HELOC vs Home Equity Loan
FeatureHELOCHome Equity Loan
StructureRevolving credit lineLump sum
Interest RateVariableFixed
Access to FundsAs neededAll at once
PaymentsInterest-only initiallyPrincipal + interest
Key Approval Factors

Primary Factors:

  • Home Equity: Typically need 15-20% equity minimum
  • Credit Score: Usually 620+ required, 740+ for best rates
  • Debt-to-Income: Total debt payments under 43% of income
  • Property Type: Primary residence gets best terms
  • Employment: Stable income history required

Tip: Shop around - rates and terms can vary significantly between lenders.

Important Risks

Key Risks:

  • Foreclosure Risk: Your home secures the debt
  • Variable Rates: Payments can increase with rising rates
  • Payment Shock: Full principal payments in repayment period
  • Declining Values: May owe more than home is worth
  • Spending Temptation: Easy access can lead to overspending

Warning: Only borrow what you can afford to repay, even if rates increase significantly.

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