How Do I Calculate My Tax Return

HELOC Calculator

Calculate Your Available Home Equity Line of Credit

Max Borrowing Limit: $0.00

Available HELOC Amount: $0.00

Est. Monthly Interest (Interest-only): $0.00

function calculateHeloc() { var homeValue = parseFloat(document.getElementById('homeValue').value); var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value); var ltvLimit = parseFloat(document.getElementById('ltvLimit').value); var helocRate = parseFloat(document.getElementById('helocRate').value); var resultBox = document.getElementById('heloc-result-box'); if (isNaN(homeValue) || isNaN(mortgageBalance) || isNaN(ltvLimit) || homeValue 0) { monthlyInt = (availableCredit * (helocRate / 100)) / 12; } else { availableCredit = 0; } // Format Output document.getElementById('maxBorrowing').innerText = "$" + maxLtvAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('availableLine').innerText = "$" + availableCredit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('monthlyInterest').innerText = "$" + monthlyInt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); resultBox.style.display = "block"; }

Understanding Your Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit (HELOC) functions much like a credit card secured by your home. It allows you to borrow against the equity you've built up in your property. Unlike a standard home equity loan, which provides a lump sum, a HELOC provides a revolving line of credit that you can draw from as needed during the "draw period."

How This HELOC Calculator Works

Lenders use a Combined Loan-to-Value (CLTV) ratio to determine how much you can borrow. Here is the breakdown of the formula used in our tool:

• Step 1: Multiply your current home value by the lender's LTV limit (usually 80% to 85%).
• Step 2: Subtract your current mortgage balance from that number.
• Step 3: The remaining balance is your estimated available credit line.

HELOC Example Calculation

Suppose your home is worth $400,000 and your current mortgage balance is $250,000. If your lender allows an 80% LTV:

1. $400,000 x 0.80 = $320,000 (Maximum Total Debt)
2. $320,000 – $250,000 = $70,000 (Your Available HELOC)

The Pros and Cons of a HELOC

Pros	Cons
Lower interest rates than credit cards.	Variable interest rates can rise.
Interest-only payment options during draw period.	Your home is used as collateral.
Flexible borrowing as you need it.	Risk of overspending.

Important Terms to Know

Draw Period: The time frame (usually 5-10 years) during which you can withdraw funds. You often only pay interest during this time.
Repayment Period: The phase (usually 10-20 years) after the draw period ends where you must pay back both principal and interest.
Appraisal: Most lenders will require a professional appraisal of your home to confirm its value before approving a HELOC.

Disclaimer: This calculator is for informational purposes only. Actual credit availability depends on lender requirements, credit scores, and verified income.