Mortgage Calculator Navy Federal

HELOC Payment & LTV Calculator

Calculation Summary

Combined LTV (CLTV):

Remaining Equity:

Monthly Payment (Draw Period – Interest Only):

*Assuming full line of credit is utilized.

Monthly Payment (Repayment Period – P+I):

*Principal and interest calculation based on balance at end of draw period.

function calculateHELOC() { var homeVal = parseFloat(document.getElementById('homeValue').value); var mortBal = parseFloat(document.getElementById('mortgageBalance').value); var helocAmt = parseFloat(document.getElementById('helocLimit').value); var rate = parseFloat(document.getElementById('interestRate').value) / 100; var drawYrs = parseFloat(document.getElementById('drawPeriod').value); var repayYrs = parseFloat(document.getElementById('repaymentPeriod').value); if (isNaN(homeVal) || isNaN(mortBal) || isNaN(helocAmt) || homeVal 0) { repaymentPayment = helocAmt * (monthlyRate * Math.pow(1 + monthlyRate, numMonthsRepay)) / (Math.pow(1 + monthlyRate, numMonthsRepay) – 1); } else { repaymentPayment = helocAmt / numMonthsRepay; } // Display Results document.getElementById('resCLTV').innerText = cltv.toFixed(2) + "%"; document.getElementById('resEquity').innerText = "$" + remainingEquity.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resDrawPayment').innerText = "$" + drawPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resRepaymentPayment').innerText = "$" + repaymentPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('helocResults').style.display = 'block'; if (cltv > 85) { document.getElementById('resCLTV').style.color = "#d9534f"; } else { document.getElementById('resCLTV').style.color = "#28a745"; } }

Understanding HELOC Payments and CLTV

A Home Equity Line of Credit (HELOC) is a powerful financial tool that allows homeowners to borrow against the equity they have built in their property. Unlike a standard home equity loan, a HELOC functions more like a credit card, where you have a revolving balance and can draw funds as needed.

Key HELOC Terms Explained

• Combined Loan-to-Value (CLTV): This is the ratio of all loans on a property (your primary mortgage plus your HELOC limit) divided by the home's appraised value. Most lenders prefer a CLTV of 85% or lower.
• Draw Period: The initial phase (usually 10 years) where you can take money out. During this time, many lenders only require interest-only payments on the amount you have actually borrowed.
• Repayment Period: Once the draw period ends, you can no longer borrow money. You enter the repayment phase (usually 20 years), where you must pay back both the principal balance and interest.

Example Calculation

Imagine your home is worth $400,000 and you owe $250,000 on your mortgage. You want a $50,000 HELOC at an interest rate of 8%.

1. CLTV: ($250,000 + $50,000) / $400,000 = 75%. This is well within the typical 85% limit.
2. Interest-Only Payment: ($50,000 × 0.08) / 12 = $333.33 per month during the draw period.
3. Repayment Phase: If you still owe the full $50,000 after 10 years, your payment would jump to approximately $418.22 per month (based on a 20-year repayment term) because you are now paying back the principal.

Why Use This Calculator?

Using a HELOC calculator helps you prepare for the "payment shock" that often occurs when the draw period ends. Because HELOCs typically have variable interest rates, your payments can fluctuate based on market conditions. Use this tool to model different interest rate scenarios to ensure your budget can handle potential increases.