Monthly Payment Mortgage Calculator

Home Equity Loan Calculator

Results Summary

Total Home Equity:

Maximum Loan Amount (at % CLTV):

Estimated Monthly Payment:

function calculateEquity() { var homeValue = parseFloat(document.getElementById('homeValue').value); var balance = parseFloat(document.getElementById('mortgageBalance').value); var cltv = parseFloat(document.getElementById('cltvLimit').value) / 100; var annualRate = parseFloat(document.getElementById('interestRate').value) / 100; var termYears = parseFloat(document.getElementById('loanTerm').value); if (isNaN(homeValue) || isNaN(balance) || isNaN(cltv) || isNaN(annualRate)) { alert("Please fill in all fields with valid numbers."); return; } // Total Equity in the home var totalEquity = homeValue – balance; // Maximum amount lender will allow (Combined Loan to Value) // (Home Value * CLTV %) – Existing Mortgage var maxBorrowable = (homeValue * cltv) – balance; if (maxBorrowable 0) { if (monthlyRate === 0) { monthlyPayment = maxBorrowable / numberOfPayments; } else { monthlyPayment = maxBorrowable * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1); } } // Display results document.getElementById('totalEquity').innerText = "$" + totalEquity.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('maxLoan').innerText = "$" + maxBorrowable.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('monthlyPayment').innerText = "$" + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('dispCLTV').innerText = (cltv * 100).toFixed(0); document.getElementById('results-area').style.display = 'block'; }

Understanding Home Equity Loans

A home equity loan, often referred to as a "second mortgage," allows homeowners to borrow against the value of their property. The loan amount is determined by the difference between the home's current market value and the remaining balance on any existing mortgages.

What is CLTV?

Combined Loan-to-Value (CLTV) is a ratio used by lenders to determine your eligibility. It represents the total of all loans on the property divided by the home's value. Most lenders prefer a CLTV of 80% to 85%, though some may go higher depending on your credit score.

How to Use This Calculator

1. Home Value: Enter the current estimated market value of your residence.
2. Mortgage Balance: Input the current payoff amount of your primary mortgage.
3. CLTV Limit: Most lenders allow up to 85%. Adjust this based on your specific bank's requirements.
4. Interest Rate: Home equity loans usually have fixed rates, typically slightly higher than primary mortgage rates.

Example Calculation

Home Value: $500,000
Mortgage Balance: $300,000
Lender Limit (80% CLTV): $400,000 total debt allowed.
Available Loan: $400,000 – $300,000 = $100,000.

Why Take a Home Equity Loan?

• Debt Consolidation: Pay off high-interest credit cards with a lower-interest secured loan.
• Home Improvements: Investing back into your home can increase its future resale value.
• Fixed Payments: Unlike a HELOC (Line of Credit), a home equity loan provides a lump sum with a predictable monthly payment.
• Tax Deductibility: In some jurisdictions, interest may be tax-deductible if used for home renovations (consult a tax professional).