This calculator provides an estimate based on your inputs. Consult directly with Bank of America for precise figures and loan terms.
Your estimated HELOC availability is: $0
Understanding Your Home Equity Line of Credit (HELOC)
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home. Think of it like a credit card for your home's equity. Bank of America, like other lenders, offers HELOCs to help homeowners access their home's value for various needs, such as home renovations, debt consolidation, education expenses, or unexpected emergencies. The amount you can borrow is based on the equity you've built in your home.
How Your HELOC Amount is Determined
The maximum amount you can borrow with a HELOC is typically calculated based on a specific Loan-to-Value (LTV) ratio. The LTV is the ratio of the total amount of debt secured by your property to the property's market value.
Home Equity: This is the difference between your home's current market value and the total amount you owe on any existing mortgages or other liens against it.
Loan-to-Value (LTV) Ratio: Lenders set a maximum LTV percentage they are willing to lend against. Bank of America, for example, might allow up to 85% LTV, meaning the total debt secured by your home (your mortgage balance plus the HELOC) cannot exceed 85% of your home's value.
The Calculation Explained
Our calculator uses the following formula to estimate your potential HELOC availability:
Calculate Maximum Allowable Debt: Maximum Allowable Debt = Estimated Current Home Value * (Desired Loan-to-Value Ratio / 100)
Calculate Your Current Equity Position: Current Equity Position = Estimated Current Home Value - Total Outstanding Mortgage Balance
Determine Potential HELOC Amount: Potential HELOC Amount = Maximum Allowable Debt - Total Outstanding Mortgage Balance
Subtract Fees: The estimated appraisal fee (and any other upfront costs) will reduce the amount of funds you can draw.
Estimated HELOC Availability = Potential HELOC Amount - Estimated Appraisal Fee
Important Note: This calculation provides an estimate. The final approved HELOC amount is subject to Bank of America's underwriting, creditworthiness assessment, and the official appraised value of your home. Fees other than appraisal can also apply.
When to Consider a HELOC
A HELOC can be a powerful financial tool if used wisely:
Home Improvements: Fund significant renovations or upgrades.
Debt Consolidation: Potentially consolidate higher-interest debt into a lower-interest HELOC.
Major Expenses: Cover costs for education, medical bills, or other significant life events.
Emergency Fund: Provide a safety net for unexpected financial needs.
Before Applying with Bank of America:
Ensure you have sufficient equity in your home.
Understand the draw period and repayment period terms.
Be aware of potential variable interest rates.
Review all fees associated with the HELOC.
This calculator is a helpful starting point to understand how much equity you might be able to access. For personalized advice and to explore specific HELOC products offered by Bank of America, please visit their official website or contact a loan officer.
function calculateHeloc() {
var homeValue = parseFloat(document.getElementById("homeValue").value);
var outstandingMortgageBalance = parseFloat(document.getElementById("outstandingMortgageBalance").value);
var helocPercentage = parseFloat(document.getElementById("helocPercentage").value);
var estimatedAppraisalFee = parseFloat(document.getElementById("estimatedAppraisalFee").value);
var resultSpan = document.getElementById("helocAvailability");
// Input validation
if (isNaN(homeValue) || homeValue <= 0 ||
isNaN(outstandingMortgageBalance) || outstandingMortgageBalance < 0 ||
isNaN(helocPercentage) || helocPercentage 100 ||
isNaN(estimatedAppraisalFee) || estimatedAppraisalFee < 0) {
resultSpan.textContent = "Invalid input. Please enter valid numbers.";
resultSpan.style.color = "#dc3545"; // Red for error
return;
}
// Calculation
var maxAllowableDebt = homeValue * (helocPercentage / 100);
var potentialHelocAmount = maxAllowableDebt – outstandingMortgageBalance;
// Ensure potential HELOC is not negative
if (potentialHelocAmount < 0) {
potentialHelocAmount = 0;
}
var estimatedHelocAvailability = potentialHelocAmount – estimatedAppraisalFee;
// Ensure final availability is not negative
if (estimatedHelocAvailability < 0) {
estimatedHelocAvailability = 0;
}
// Format to two decimal places for currency representation
var formattedAvailability = estimatedHelocAvailability.toFixed(2);
resultSpan.textContent = "$" + formattedAvailability;
resultSpan.style.color = "#28a745"; // Green for success
}