fincalculator
HELOC Calculator
Use this free HELOC Calculator to estimate payments for a Home Equity Line of Credit. Simple, accurate, and easy to use online.
A Home Equity Line of Credit (HELOC) Calculator helps you estimate your borrowing power and monthly payments. A HELOC acts like a credit card secured by your home, allowing you to borrow against your equity as needed.
A HELOC typically has two phases: a Draw Period (usually 10 years) where you can borrow money and pay interest-only, followed by a Repayment Period (usually 20 years) where you pay back the principal and interest.
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INPUT VALUES
When to Use This Calculator
Use this calculator to:
- Estimate Credit Limit: See how much cash you can access based on your home's value and current mortgage.
- Plan Payments: Be prepared for the payment shock when the interest-only draw period ends and the repayment period begins.
Example Scenario
Example Scenario:
- Home Value: $300,000
- Max LTV: 85%
- Existing Mortgage: $200,000
1. Credit Limit Calculation:
Max Loan = $300,000 × 0.85 = $255,000.
Limit = $255,000 - $200,000 = $55,000 available.
2. Monthly Payments (on $50,000 drawn at 8%):
- Draw Period (Interest Only): ($50,000 × 0.08) / 12 = $333.33/mo.
- Repayment Period (20 Year Amortization): Principal + Interest = ~$418.22/mo.