Nc Tax Calculator

by

HELOC (Home Equity Line of Credit) Calculator

Estimate how much credit you can access based on your home's current market value and your outstanding mortgage balance.

70% 75% 80% (Standard) 85% 90% Combined Loan-to-Value allowed by the lender.

Understanding Your HELOC Limit

A Home Equity Line of Credit (HELOC) is a revolving line of credit that uses your home as collateral. Unlike a home equity loan, which provides a lump sum, a HELOC allows you to withdraw funds as needed, up to a specific limit.

How the Calculation Works

Lenders typically use a Combined Loan-to-Value (CLTV) ratio to determine your borrowing power. Most lenders permit a CLTV of 80% to 85%. The formula is as follows:

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

Example Scenario

If your home is valued at $400,000 and your lender allows an 80% CLTV, your total maximum borrowing (mortgage + HELOC) is $320,000. If you currently owe $250,000 on your mortgage, your estimated HELOC limit would be $70,000.

Factors That Affect Approval

  • Credit Score: Higher scores usually unlock lower interest rates and higher CLTV limits.
  • Debt-to-Income (DTI) Ratio: Lenders want to ensure you can afford the potential new monthly payments.
  • Appraisal: A professional appraisal will confirm the actual market value of your home.
function calculateHELOC() { var homeValue = parseFloat(document.getElementById('homeValue').value); var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value); var cltvLimit = parseFloat(document.getElementById('cltvLimit').value) / 100; var resultDiv = document.getElementById('helocResult'); if (isNaN(homeValue) || isNaN(mortgageBalance) || homeValue <= 0) { resultDiv.style.display = 'block'; resultDiv.style.backgroundColor = '#fff3cd'; resultDiv.style.color = '#856404'; resultDiv.innerHTML = 'Error: Please enter valid numbers for home value and mortgage balance.'; return; } var totalBorrowingPower = homeValue * cltvLimit; var maxHELOC = totalBorrowingPower – mortgageBalance; var currentLTV = (mortgageBalance / homeValue) * 100; resultDiv.style.display = 'block'; if (maxHELOC <= 0) { resultDiv.style.backgroundColor = '#f8d7da'; resultDiv.style.color = '#721c24'; resultDiv.innerHTML = '

No Equity Available

' + 'Based on your current mortgage balance of $' + mortgageBalance.toLocaleString() + ', you have exceeded the ' + (cltvLimit * 100) + '% CLTV threshold. You likely do not qualify for a HELOC at this time.'; } else { resultDiv.style.backgroundColor = '#d4edda'; resultDiv.style.color = '#155724'; resultDiv.innerHTML = '

Estimated HELOC Limit: $' + maxHELOC.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + '

' + '
' + '
Total Borrowing Power:$' + totalBorrowingPower.toLocaleString() + '
' + '
Current LTV:' + currentLTV.toFixed(2) + '%
' + '
Remaining Equity:$' + (homeValue – mortgageBalance).toLocaleString() + '
' + '
Allowed CLTV:' + (cltvLimit * 100) + '%
' + '
'; } }

Leave a Comment