HELOC Calculator Tool (Estimate)

HELOC Calculator (Estimate)

Estimate Only - Do Not Use for Driving Decisions!

$
$
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Lender's max Combined LTV (e.g., 80%).
$
Amount you plan to borrow.
%
HELOC rates are often variable.
Period for Principal + Interest payments.

Estimated Results

Maximum Available HELOC Amount: $0.00

Est. Interest-Only Payment (Draw Period): $0.00 / month

Est. Principal + Interest Payment (Repayment Period): $0.00 / month

Home Value Breakdown (Estimate)
$0
Home Value
$0
Mortgage
$0
Max HELOC
Monthly Payment Comparison (Estimate)
$0
Interest-Only
$0
Principal + Interest
Estimate Disclaimer: This calculator provides simplified estimations. Actual loan amounts, interest rates (often variable), LTV ratios, and payments are determined by lenders based on your specific financial situation, creditworthiness, property appraisal, and current market conditions. This tool is NOT a loan offer or guarantee. Consult multiple lenders for accurate quotes.

What is a HELOC Calculator?

A HELOC (Home Equity Line of Credit) Calculator is a financial tool designed to estimate how much you might be able to borrow against the equity in your home and what your potential monthly payments could look like. A HELOC works like a revolving credit line secured by your property, allowing you to draw funds as needed up to a certain limit during a "draw period."

How Does This Calculator Work?

This calculator estimates your potential HELOC based on several key factors:

  • Maximum Borrowable Amount Calculation: Uses your Home Value, Max LTV, and Mortgage Balance to estimate the total credit line available.
  • Payment Estimations: Calculates the estimated Interest-Only monthly payment (typical during the draw period) and the estimated fully amortized Principal + Interest monthly payment (typical during the repayment period), based on the amount you plan to draw and the interest rate.
  • Visualization: Displays bar charts comparing the payment types and showing the breakdown of your home value relative to your mortgage and potential HELOC.

Important: The interest rate input is a single estimate. Real HELOC rates are often variable, meaning payments can change. This calculator does not model variable rates.

Frequently Asked Questions (FAQs)

  • What is Loan-to-Value (LTV)?
    LTV compares loan amounts to property value. Combined LTV (CLTV) includes your mortgage plus the HELOC. Lenders use a max CLTV (e.g., 80%) to limit borrowing against equity.
  • Is the interest rate fixed or variable?
    Most HELOCs have variable rates tied to an index like the Prime Rate. Your rate and payments can change. This tool uses a fixed rate for estimation only.
  • What are the Draw Period and Repayment Period?
    HELOCs usually have a Draw Period (e.g., 10 years) where you borrow funds (often paying interest-only) followed by a Repayment Period (e.g., 20 years) where you repay principal and interest.
  • Are there fees?
    Yes, HELOCs can have application, appraisal, title, annual, or closing fees, which are **not** included here. Ask lenders about all costs.
  • HELOC vs. Home Equity Loan?
    HELOC = variable rate credit line. Home Equity Loan = fixed-rate lump sum loan.
  • Is HELOC interest tax-deductible?
    Maybe. Generally only if used to "buy, build, or substantially improve" the home securing the loan, subject to limits. Consult a tax advisor.
  • Is this calculator free?
    Yes, this tool is free for estimations.
ESTIMATE ONLY. NOT FINANCIAL ADVICE OR A LOAN OFFER. DO NOT RELY ON THIS FOR DRIVING OR LEGAL PURPOSES. Consult lenders for actual terms.