Heloc Loan Calculator

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HELOC Loan Calculator
Calculate Max Credit LineCalculate Draw Period Payment (Interest Only)Calculate Repayment Period Payment (P+I)
Result Analysis:
Enter your data and click calculate to see your HELOC availability and payment estimates.
function calculateHeloc(){var hv=parseFloat(document.getElementById('home_value').value);var mb=parseFloat(document.getElementById('mortgage_balance').value);var cltv=parseFloat(document.getElementById('cltv_limit').value)/100;var rate=parseFloat(document.getElementById('interest_rate').value)/100;var term=parseFloat(document.getElementById('loan_term').value);var type=document.getElementById('calc_type').value;var showSteps=document.getElementById('steps').checked;if(isNaN(hv)||isNaN(mb)||isNaN(cltv)||isNaN(rate)||isNaN(term)){alert('Please fill in all fields with valid numbers.');return;}var maxBorrowing=(hv*cltv)-mb;if(maxBorrowing<0)maxBorrowing=0;var output="";if(type==="max_line"){output="Maximum HELOC Credit Line: $"+maxBorrowing.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+"
";if(showSteps){output+="
Calculation:
1. Home Value ("+hv+") x CLTV ("+(cltv*100)+"%) = "+(hv*cltv)+"
2. Total Capacity – Existing Balance ("+mb+") = "+maxBorrowing+"
";}}else if(type==="payment_draw"){var monthlyInt=(maxBorrowing*rate)/12;output="Estimated Interest-Only Payment: $"+monthlyInt.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+"
Note: This applies during your draw period based on the full credit line usage.";if(showSteps){output+="
Calculation:
Annual Interest: "+maxBorrowing+" x "+(rate*100)+"% = "+(maxBorrowing*rate)+"
Monthly: "+(maxBorrowing*rate)+" / 12 = "+monthlyInt.toFixed(2)+"
";}}else if(type==="payment_full"){var i=rate/12;var n=term*12;var pmt=maxBorrowing*(i*Math.pow(1+i,n))/(Math.pow(1+i,n)-1);output="Estimated Monthly Repayment (P+I): $"+pmt.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+"
Total monthly payment during the repayment period.";if(showSteps){output+="
Formula: P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Principal: "+maxBorrowing+"
Monthly Rate: "+i.toFixed(6)+"
Total Months: "+n+"
";}}document.getElementById('answer').innerHTML=output;}

HELOC Loan Calculator Use

A HELOC loan calculator is an essential tool for homeowners looking to leverage the equity built up in their property. Unlike a standard home equity loan, a Home Equity Line of Credit (HELOC) acts more like a credit card secured by your home, allowing you to draw funds as needed during a specific period.

This calculator helps you determine three critical metrics: your maximum borrowing capacity based on current lender limits, your interest-only payments during the draw period, and your full principal-and-interest payments during the repayment phase.

Current Home Value
The estimated market price of your home today. This is the foundation of your equity calculation.
Existing Mortgage Balance
The total remaining amount you owe on your primary mortgage and any other liens against the property.
Max CLTV Limit
Combined Loan-to-Value limit. Most lenders allow a total debt (mortgage + HELOC) of up to 80% to 90% of your home's value.

How the HELOC Calculation Works

Lenders use the Combined Loan-to-Value (CLTV) ratio to determine how much they are willing to lend. The basic formula to find your available credit line is:

HELOC Limit = (Home Value × Max CLTV %) – Current Mortgage Balance

Once you have your line of credit, the payments are usually split into two phases:

  • Draw Period: Usually the first 10 years where you can take money out. Payments are typically interest-only on the amount borrowed.
  • Repayment Period: Usually the following 10-20 years. You can no longer draw funds, and you must pay back both principal and interest.

HELOC Calculation Example

Scenario: A homeowner has a house worth $400,000. They owe $250,000 on their mortgage. Their lender allows up to 85% CLTV. They want to know their maximum HELOC limit and what a 7% interest-only payment would look like.

Step-by-step solution:

  1. Max Total Debt = $400,000 × 0.85 = $340,000
  2. HELOC Line = $340,000 – $250,000 = $90,000
  3. Annual Interest = $90,000 × 0.07 = $6,300
  4. Monthly Draw Payment = $6,300 / 12 = $525.00
  5. Final Result: Max HELOC is $90,000 with a $525 monthly interest-only payment.

Common HELOC Questions

What is the difference between a HELOC and a Home Equity Loan?

A home equity loan provides a lump sum with a fixed interest rate and fixed monthly payments. A HELOC is a revolving line of credit (like a credit card) with a variable interest rate, where you only pay interest on what you actually spend during the draw period.

Can HELOC rates change?

Yes, most HELOCs have variable interest rates tied to an index like the U.S. Prime Rate. If the Prime Rate increases, your HELOC interest rate and monthly payment will also increase.

What happens if my home value drops?

If your home value decreases significantly, your lender may choose to freeze or reduce your credit line because your CLTV ratio has become too high. This is why using a heloc loan calculator to stay within a safe margin is important.

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