.he-calc-section { margin-bottom: 20px; }
.he-calc-label { display: block; font-weight: 600; margin-bottom: 8px; color: #2c3e50; }
.he-calc-input-group { position: relative; display: flex; align-items: center; }
.he-calc-input { width: 100%; padding: 12px; border: 2px solid #ddd; border-radius: 6px; font-size: 16px; transition: border-color 0.3s; }
.he-calc-input:focus { border-color: #0073aa; outline: none; }
.he-calc-prefix { position: absolute; left: 12px; color: #666; }
.he-calc-with-prefix { padding-left: 25px; }
.he-calc-button { width: 100%; background-color: #0073aa; color: white; padding: 15px; border: none; border-radius: 6px; font-size: 18px; font-weight: bold; cursor: pointer; transition: background-color 0.3s; }
.he-calc-button:hover { background-color: #005177; }
#he-calc-results { margin-top: 25px; padding: 20px; border-radius: 6px; background-color: #f9f9f9; display: none; border-left: 5px solid #0073aa; }
.he-result-row { display: flex; justify-content: space-between; margin-bottom: 10px; border-bottom: 1px solid #eee; padding-bottom: 5px; }
.he-result-label { font-weight: 500; }
.he-result-value { font-weight: 700; color: #0073aa; }
.he-error { color: #d63638; background: #fbeaea; padding: 10px; border-radius: 4px; display: none; margin-bottom: 15px; }
.he-article { margin-top: 40px; border-top: 1px solid #eee; padding-top: 20px; }
.he-article h2 { color: #23282d; font-size: 24px; margin-bottom: 15px; }
.he-article h3 { color: #23282d; font-size: 18px; margin-top: 20px; }
.he-article p { margin-bottom: 15px; }
.he-article ul { margin-bottom: 15px; padding-left: 20px; }
function calculateHomeEquity() {
var homeValue = parseFloat(document.getElementById('he-home-value').value);
var mortgageBalance = parseFloat(document.getElementById('he-mortgage-balance').value);
var maxLtv = parseFloat(document.getElementById('he-max-ltv').value);
var interestRate = parseFloat(document.getElementById('he-interest-rate').value);
var termYears = parseInt(document.getElementById('he-loan-term').value);
var errorDiv = document.getElementById('he-error-msg');
var resultsDiv = document.getElementById('he-calc-results');
// Reset view
errorDiv.style.display = 'none';
resultsDiv.style.display = 'none';
// Validation
if (isNaN(homeValue) || isNaN(mortgageBalance) || isNaN(maxLtv) || isNaN(interestRate) || homeValue <= 0) {
errorDiv.style.display = 'block';
return;
}
// Calculation Logic
var totalEquity = homeValue – mortgageBalance;
var maxTotalLoanAllowed = homeValue * (maxLtv / 100);
var maxBorrowable = maxTotalLoanAllowed – mortgageBalance;
if (maxBorrowable 0) {
if (monthlyRate === 0) {
monthlyPayment = maxBorrowable / numberOfPayments;
} else {
monthlyPayment = maxBorrowable * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
}
// Format Currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 0,
maximumFractionDigits: 0
});
var monthlyFormatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2,
maximumFractionDigits: 2
});
// Display Results
document.getElementById('res-total-equity').innerText = formatter.format(totalEquity);
document.getElementById('res-max-borrowable').innerText = formatter.format(maxBorrowable);
document.getElementById('res-monthly-payment').innerText = monthlyFormatter.format(monthlyPayment);
document.getElementById('res-cltv').innerText = maxLtv + "%";
resultsDiv.style.display = 'block';
resultsDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}
Home Equity Loan Calculator
Please enter valid numbers for all fields.
$
$
Most lenders allow up to 80-85% Combined Loan-to-Value (CLTV).
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Your Results
Total Equity in Home:
$0
Max Potentially Borrowable:
$0
Estimated Monthly Payment:
$0
Combined Loan-to-Value (CLTV):
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Understanding Home Equity Loans
A home equity loan, often referred to as a "second mortgage," allows you to borrow a lump sum of money using the equity in your home as collateral. Equity is the difference between what your home is worth and what you still owe on your primary mortgage.
How This Calculator Works
This calculator determines your borrowing power based on the Combined Loan-to-Value (CLTV) ratio. Most traditional lenders prefer that your total debt (existing mortgage + new home equity loan) does not exceed 80% to 85% of your home's appraised value.
Key Terms to Know:
- Home Value: The current market price of your property.
- Mortgage Balance: The remaining principal amount you owe on your first mortgage.
- CLTV: The ratio of all loans on a property to its value. Lenders use this to assess risk.
- Fixed Rate: Unlike a HELOC (Line of Credit), a Home Equity Loan usually has a fixed interest rate and fixed monthly payments.
Example Calculation
Imagine your home is worth $400,000 and you owe $250,000 on your mortgage. You want to apply for a loan with an 80% CLTV limit:
- 80% of $400,000 = $320,000 (Maximum total debt allowed)
- $320,000 – $250,000 (Current balance) = $70,000
In this scenario, you could potentially borrow up to $70,000. If you chose a 15-year term at 7% interest, your monthly payment would be approximately $629.
Is a Home Equity Loan Right for You?
Home equity loans are popular for debt consolidation, home improvements, or major expenses because they typically offer lower interest rates than credit cards or personal loans. However, remember that your home is the collateral—failure to repay the loan could lead to foreclosure.