.he-calc-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 25px;
border: 1px solid #e0e0e0;
border-radius: 12px;
background-color: #ffffff;
box-shadow: 0 4px 15px rgba(0,0,0,0.05);
color: #333;
}
.he-calc-header {
text-align: center;
margin-bottom: 30px;
}
.he-calc-header h2 {
color: #1a365d;
margin-bottom: 10px;
font-size: 28px;
}
.he-calc-form {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
margin-bottom: 25px;
}
@media (max-width: 600px) {
.he-calc-form { grid-template-columns: 1fr; }
}
.he-input-group {
display: flex;
flex-direction: column;
}
.he-input-group label {
font-weight: 600;
margin-bottom: 8px;
color: #4a5568;
font-size: 14px;
}
.he-input-group input {
padding: 12px;
border: 2px solid #cbd5e0;
border-radius: 6px;
font-size: 16px;
transition: border-color 0.2s;
}
.he-input-group input:focus {
outline: none;
border-color: #3182ce;
}
.he-calc-btn {
grid-column: 1 / -1;
background-color: #2b6cb0;
color: white;
padding: 15px;
border: none;
border-radius: 6px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.2s;
}
.he-calc-btn:hover {
background-color: #2c5282;
}
.he-result-box {
background-color: #f7fafc;
padding: 20px;
border-radius: 8px;
border-left: 5px solid #2b6cb0;
margin-top: 20px;
text-align: center;
}
.he-result-value {
font-size: 32px;
font-weight: 800;
color: #2d3748;
display: block;
margin-top: 10px;
}
.he-article {
margin-top: 40px;
line-height: 1.6;
color: #2d3748;
}
.he-article h3 {
color: #1a365d;
border-bottom: 2px solid #edf2f7;
padding-bottom: 10px;
margin-top: 30px;
}
.he-article p {
margin-bottom: 15px;
}
.he-example {
background-color: #fffaf0;
padding: 15px;
border-radius: 6px;
border: 1px dashed #ed8936;
}
Your Potential Home Equity Loan Amount:
$0.00
How to Calculate Your Home Equity Loan
A home equity loan allows you to borrow a lump sum of money using your home as collateral. To determine how much you are eligible for, lenders use the Combined Loan-to-Value (CLTV) ratio. Most lenders limit this ratio to 80% or 85% of your home's current market value.
The Formula:
(Home Value × Max LTV %) – Current Mortgage Balance = Potential Loan Amount
Understanding the Key Factors
- Current Home Value: This is what your home would realistically sell for today. Lenders will typically require a professional appraisal to verify this.
- Mortgage Balance: This is the remaining principal on your primary mortgage and any other existing liens on the property.
- CLTV (Combined Loan-to-Value): This represents the total debt secured by your home compared to its value. If your home is worth $500,000 and the lender allows 80% CLTV, your total debt (mortgage + home equity loan) cannot exceed $400,000.
Realistic Example:
Imagine your home is worth $400,000 and you still owe $220,000 on your mortgage. If your bank allows an 80% CLTV:
- 80% of $400,000 = $320,000 (Maximum total debt allowed)
- $320,000 – $220,000 = $100,000
In this scenario, you could potentially borrow up to $100,000 in a home equity loan.
Why Use a Home Equity Loan?
Home equity loans are popular for debt consolidation, major home renovations, or educational expenses because they typically offer much lower interest rates than credit cards or personal loans. However, remember that your home serves as collateral; failure to repay the loan could lead to foreclosure.
function calculateEquity() {
var homeValue = parseFloat(document.getElementById('homeValue').value);
var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value);
var cltvLimit = parseFloat(document.getElementById('cltvLimit').value);
var resultArea = document.getElementById('heResultArea');
var resultDisplay = document.getElementById('heResultDisplay');
var detailsDisplay = document.getElementById('heDetails');
if (isNaN(homeValue) || isNaN(mortgageBalance) || isNaN(cltvLimit)) {
alert("Please enter valid numeric values for all fields.");
return;
}
if (homeValue <= 0) {
alert("Home value must be greater than zero.");
return;
}
// Calculation Logic
var ltvDecimal = cltvLimit / 100;
var maxTotalDebt = homeValue * ltvDecimal;
var potentialLoan = maxTotalDebt – mortgageBalance;
// Display logic
resultArea.style.display = "block";
if (potentialLoan <= 0) {
resultDisplay.innerHTML = "$0.00";
resultDisplay.style.color = "#e53e3e";
detailsDisplay.innerHTML = "Based on your inputs, you currently do not have enough equity to meet the " + cltvLimit + "% LTV requirement.";
} else {
resultDisplay.innerHTML = "$" + potentialLoan.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultDisplay.style.color = "#2d3748";
detailsDisplay.innerHTML = "This represents a total maximum debt of $" + maxTotalDebt.toLocaleString() + " at " + cltvLimit + "% LTV.";
}
// Smooth scroll to result
resultArea.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}