How much HELOC can I get?

Up to the lender’s combined loan-to-value limit, commonly 80% to 90% of the home’s value, minus what you still owe on the mortgage, provided your income and credit support the payment. The number above is that ceiling; the lender’s appraisal and underwriting set the final line.

Why does the payment change?

Almost all HELOCs carry a variable rate tied to an index such as the prime rate, so the interest-only payment moves with it, and the repayment-period payment is recalculated when draws end. Ask for the margin, the caps and the index before signing.

Should I take a HELOC or a home equity loan?

A HELOC lets you draw as needed at a variable rate; a home equity loan pays a lump sum at a fixed rate. If you need a known amount at once, compare the fixed-rate loan; if you need flexibility, compare lines by margin, caps and fees.

Home equity

HELOC Calculator: How Much Can I Borrow?

Estimate the home equity line of credit you could qualify for from your home value, mortgage balance and the lender’s combined loan-to-value limit, plus the interest-only and repayment-period payments on the amount you draw.

Home value$What the home would appraise for today.Current mortgage balance$Everything already secured by the home.Maximum combined loan-to-value%Set by the lender; many cap a HELOC at 80% to 90% of value including the first mortgage.Amount you plan to draw$HELOC interest rate%Variable in most plans; use the rate quoted to you.Repayment periodyrsThe years over which the balance is repaid after the draw period ends.

Available line of credit$147,00085% of value minus the mortgage balance.

Current loan-to-value: 58.2%
Combined loan-to-value after the draw: 69.1%
Interest-only payment on the draw: $425What many plans charge during the draw period, at the rate entered.
Repayment-period payment (20 years): $521Principal and interest once draws end, if the rate stayed where it is.

How the math works

1
Maximum combined debt
Home value times the lender’s combined loan-to-value limit. That is the most that can be secured by the home across the first mortgage and the line.
2
Available line
Subtract the current mortgage balance. Lenders also check income, credit and the appraisal, so treat this as a ceiling.
3
Payments
During the draw period most plans charge interest only on what you have drawn. After it, the balance amortizes over the repayment period at the then-current variable rate.

Worked example with the starting figures above: available line of credit $147,000; current loan-to-value 58.2%; combined loan-to-value after the draw 69.1%; interest-only payment on the draw $425; repayment-period payment (20 years) $521. Rates are illustrative examples, not a quote.

HELOC Calculator: How Much Can I Borrow?

How the math works

Maximum combined debt

Available line

Payments

HELOC Calculator questions

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