Home Equity Mortgage Calculator
Estimate how much you may be able to borrow, your monthly payment, total interest, CLTV, DTI, fees, and overall cost of a home equity loan.
Loan Costs & Fees
Optional HELOC Comparison
Your Estimated Results
Affordability & Borrowing Capacity
These figures are estimates. Actual lender limits, underwriting requirements, property valuation, credit profile, income verification and fees can differ.
Home Equity Loan vs. HELOC
| Metric | Home Equity Loan | HELOC |
|---|---|---|
| Estimated Amount | $0 | $0 |
| Rate Used | 0% | 0% |
| Estimated Monthly Payment | $0 | $0 |
| Higher-Rate Stress Payment | $0 | $0 |
The HELOC figures are simplified estimates. Actual HELOC payments can vary because rates, draw periods, repayment rules and minimum-payment formulas differ by lender.
Payment & Interest Comparison
| Scenario | Rate | Monthly P&I | Total Interest |
|---|---|---|---|
| Current Loan Estimate | — | $0 | — |
| New Loan | 0% | $0 | $0 |
| Stress Rate | 0% | $0 | — |
Estimated First-Year Amortization
| Month | Payment | Principal | Interest | Remaining Balance |
|---|
How the Estimate Is Calculated
- Equity: Current home value minus your existing mortgage and other liens.
- Maximum borrowing limit: The selected maximum CLTV is applied to the home’s value, then existing secured debt is subtracted.
- New payment: The requested amount is amortized over the selected term using the entered interest rate.
- Total housing cost: Existing mortgage payment, new payment, property taxes, insurance and HOA fees are combined.
- DTI: Estimated monthly debt obligations are divided by gross monthly income.
- Total interest: The scheduled loan payments are compared with the financed principal.
Frequently Asked Questions
How much can I borrow against my home?
It depends on your home’s value, existing mortgage balance, other liens, lender’s maximum CLTV, income, credit profile and other underwriting factors. This calculator estimates the amount available under the CLTV assumption you enter.
What is home equity?
Home equity is generally the current value of your property minus the amount you owe against it. Your usable borrowing amount may be lower because lenders may apply a maximum combined loan-to-value limit.
Is a home equity loan a second mortgage?
If you already have a mortgage, a new loan secured by the same property is generally a second mortgage or junior lien.
Does a home equity loan have a fixed payment?
Many home equity loans have fixed rates and regular payments, although loan terms vary by lender.
What is the difference between a home equity loan and a HELOC?
A home equity loan generally provides a lump sum. A HELOC is a revolving credit line that allows you to draw funds during the available draw period. HELOC rates are commonly adjustable.
Can I use a home equity loan to pay off other debt?
You can potentially use borrowed funds for different purposes depending on the lender and loan terms. However, converting unsecured debt into debt secured by your home changes the risk because your property is collateral.
Is the interest tax deductible?
U.S. federal tax treatment depends on how the borrowed money is used and other requirements. For current federal rules, consult IRS guidance or a qualified tax professional rather than relying on this calculator.
What happens if my home’s value falls?
A lower property value can reduce your equity and may affect your combined loan-to-value position. It can also affect how much additional credit a lender is willing to provide.
Important: This calculator provides estimates for educational purposes and is not a loan offer, approval, underwriting decision or tax advice. Actual terms can vary by lender, property, credit profile, income, debt, location and loan program.
How Much Can You Borrow?
The amount available depends on your home’s current value, the balance of your existing mortgage, other liens, the lender’s maximum combined loan-to-value requirement, and your financial profile.
For example, if a property is worth $450,000 and the existing mortgage balance is $250,000, the basic equity calculation is:
$450,000 − $250,000 = $200,000 of equity
However, that does not necessarily mean you can borrow the entire $200,000. A lender may apply a maximum combined loan-to-value limit.
What Is a Home Equity Loan?
A home equity loan allows a homeowner to borrow against the equity in a property. The borrower generally receives the funds as a lump sum and repays the balance according to the loan agreement.
If you already have a mortgage, the new debt is generally a second mortgage or junior lien.
Because the property secures the debt, failing to repay the loan can put the home at risk.
Home Equity Loan vs. HELOC
A home equity loan and a HELOC both use home equity as collateral, but they work differently.
A home equity loan generally provides a lump sum. A HELOC provides a revolving credit line from which the borrower can draw funds, subject to the terms of the account. HELOCs commonly have adjustable interest rates.
Your calculator already lets visitors compare the two approaches.
What Is CLTV?
Combined loan-to-value, or CLTV, compares the total debt secured by the property with the home’s value.
For example:
Existing mortgage + new loan ÷ home value × 100 = CLTV
If your home is worth $500,000 and your total secured debt after borrowing would be $400,000:
$400,000 ÷ $500,000 × 100 = 80% CLTV
The actual maximum allowed by a lender can vary.
Does a Home Equity Loan Increase My Monthly Payment?
Usually, yes.
If you already have a first mortgage, the new loan creates an additional payment. Your overall housing cost can therefore include:
- Existing mortgage payment
- New loan payment
- Property taxes
- Home insurance
- HOA or community fees
That’s why the calculator includes the existing mortgage payment rather than showing the new loan payment in isolation.
Can You Lose Your Home?
A home equity loan is secured by the property. If the borrower cannot meet the repayment obligations, the home can potentially be at risk of foreclosure. The CFPB specifically warns borrowers about this risk with home equity loans and HELOCs.
This is an important section to keep because it answers a major user concern without making the page unnecessarily promotional.