HELOC Calculator
Calculate your maximum Home Equity Line of Credit limit
%
Most lenders allow up to 80-85% Combined Loan-to-Value (CLTV).
Maximum HELOC Amount
$0.00
Total Borrowing Capacity:
$0.00
Current Home Equity:
$0.00
Understanding Your HELOC Limits
A Home Equity Line of Credit (HELOC) is a revolving credit line that uses your home as collateral. Unlike a standard home equity loan, a HELOC works similarly to a credit card where you can borrow, repay, and borrow again during the "draw period."
How the Calculation Works
Lenders determine your credit limit based on the Combined Loan-to-Value (CLTV) ratio. The formula used in this calculator is:
HELOC Limit = (Home Value × Max LTV %) – Current Mortgage Balance
Example Scenario
If your home is worth $500,000 and your lender allows an 80% LTV, your total borrowing capacity is $400,000. If you still owe $300,000 on your primary mortgage, your maximum HELOC line would be $100,000.
Factors Influencing Your HELOC
- Credit Score: Higher scores typically unlock higher LTV limits and lower interest rates.
- Debt-to-Income (DTI) Ratio: Lenders evaluate your monthly income against total debt obligations.
- Appraised Value: Professional appraisals may differ from estimated market values.
- Equity Buffer: Lenders require you to keep some equity (usually 15-20%) untouched in the home.