A Home Equity Line of Credit (HELOC) from US Bank allows homeowners to borrow against the equity they've built in their home. This calculator provides an estimated maximum HELOC amount you might qualify for, based on typical lending criteria. It's important to note that this is a pre-qualification estimation and not a guarantee of loan approval. Final approval depends on a full credit review by US Bank.
How the Calculation Works
This calculator uses a common industry standard to estimate potential HELOC amounts. The primary factors considered are:
Home Value: The current market value of your property.
Outstanding Mortgage Balance: The remaining amount owed on your primary mortgage.
Combined Loan-to-Value (CLTV) Ratio: Lenders limit the total amount you can borrow against your home. A common CLTV limit for HELOCs is 80% to 90% of the home's value. This means the sum of your mortgage and the HELOC cannot exceed this percentage.
Desired HELOC Amount: The amount you wish to borrow.
Estimated Interest Rate & Loan Term: Used to calculate estimated monthly payments during the draw period for illustrative purposes, though the primary calculation focuses on the available equity.
The core of the calculation is determining your available equity and then assessing how much of that equity a lender like US Bank might be willing to lend through a HELOC, subject to their CLTV requirements.
Example Scenario:
Let's assume:
Current Home Value: $500,000
Current Outstanding Mortgage Balance: $300,000
Desired HELOC Amount: $100,000
Estimated HELOC Interest Rate: 7.5%
HELOC Draw Period: 10 Years
Calculation Steps:
Calculate Current Loan-to-Value (LTV): (Outstanding Mortgage / Home Value) = ($300,000 / $500,000) = 60%
Determine Maximum CLTV: Let's assume US Bank's maximum CLTV for a HELOC is 85%.
Calculate Maximum Total Debt Allowed: (Home Value * Maximum CLTV) = ($500,000 * 0.85) = $425,000
Calculate Maximum Available Equity for HELOC: (Maximum Total Debt Allowed – Outstanding Mortgage Balance) = ($425,000 – $300,000) = $125,000
Compare Desired HELOC with Maximum Available Equity: Since $100,000 (desired) is less than $125,000 (maximum available), this scenario suggests you might qualify for the desired amount, subject to creditworthiness and other bank policies.
Estimate Monthly Payment (Interest-Only during Draw Period): This is calculated based on the approved HELOC amount, interest rate, and term. For a $100,000 HELOC at 7.5% for 10 years, the interest-only payment would be approximately: (Loan Amount * Interest Rate) / 12 = ($100,000 * 0.075) / 12 = $625 per month.
Using This Calculator
Enter your home's current value, your remaining mortgage balance, and the HELOC amount you're interested in. Inputting an estimated interest rate and the draw period helps provide a more complete picture of potential costs.
Remember, this tool is for estimation purposes only. For accurate details and to start an application, please visit the official US Bank website or contact a US Bank mortgage specialist.
Important Considerations for HELOCs:
Variable Interest Rates: Most HELOCs have variable rates that can increase over time, affecting your monthly payments.
Draw Period vs. Repayment Period: You typically borrow during the draw period and repay principal and interest during the repayment period (which usually follows the draw period).
Closing Costs: Be aware of potential fees associated with opening a HELOC.
Risk: Your home is collateral for a HELOC. Failure to repay could lead to foreclosure.
function calculateHELOC() {
var homeValue = parseFloat(document.getElementById("homeValue").value);
var outstandingMortgage = parseFloat(document.getElementById("outstandingMortgage").value);
var desiredHELOCAmount = parseFloat(document.getElementById("desiredHELOCAmount").value);
var estimatedInterestRate = parseFloat(document.getElementById("estimatedInterestRate").value);
var loanTerm = parseFloat(document.getElementById("loanTerm").value);
var resultDiv = document.getElementById("result");
// Clear previous results
resultDiv.innerHTML = ";
// Input validation
if (isNaN(homeValue) || homeValue <= 0) {
resultDiv.innerHTML = 'Please enter a valid Current Home Value.';
return;
}
if (isNaN(outstandingMortgage) || outstandingMortgage < 0) {
resultDiv.innerHTML = 'Please enter a valid Outstanding Mortgage Balance.';
return;
}
if (isNaN(desiredHELOCAmount) || desiredHELOCAmount <= 0) {
resultDiv.innerHTML = 'Please enter a valid Desired HELOC Amount.';
return;
}
if (isNaN(estimatedInterestRate) || estimatedInterestRate < 0) {
resultDiv.innerHTML = 'Please enter a valid Estimated Interest Rate.';
return;
}
if (isNaN(loanTerm) || loanTerm homeValue) {
resultDiv.innerHTML = 'Outstanding Mortgage Balance cannot exceed Current Home Value.';
return;
}
// — HELOC Calculation Logic —
// Assume a maximum Combined Loan-to-Value (CLTV) ratio, typically 80-90%
// US Bank's specific limits can vary, so we'll use 85% as a common example.
var maxCLTV = 0.85; // Example: 85%
var maxTotalDebtAllowed = homeValue * maxCLTV;
var availableEquityForHELOC = maxTotalDebtAllowed – outstandingMortgage;
var calculatedHELOCAmount = Math.min(desiredHELOCAmount, availableEquityForHELOC);
// Ensure calculated HELOC is not negative
if (calculatedHELOCAmount 0 && calculatedHELOCAmount > 0) {
monthlyInterestPayment = (calculatedHELOCAmount * (estimatedInterestRate / 100)) / 12;
}
// — Display Results —
var resultHTML = 'Estimated Maximum HELOC: $' + calculatedHELOCAmount.toLocaleString(undefined, { maximumFractionDigits: 0 }) + '';
resultHTML += 'Estimated Monthly Interest-Only Payment (Draw Period): $' + monthlyInterestPayment.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + '';
// Add a note about CLTV used
resultHTML += ";
resultHTML += 'Calculation based on an estimated maximum CLTV of ' + (maxCLTV * 100) + '%.';
resultHTML += 'This is an estimate; actual loan terms may vary.';
resultDiv.innerHTML = resultHTML;
}