Estimate the maximum line of credit you can borrow against your home equity.
Estimated Max HELOC Amount:
Understanding How a HELOC is Calculated
A Home Equity Line of Credit (HELOC) is a revolving line of credit that uses your home as collateral. Unlike a standard home equity loan, which provides a lump sum, a HELOC allows you to withdraw funds as needed, up to a specific limit determined by your equity.
The LTV Ratio Explained
Lenders typically do not allow you to borrow 100% of your home's value. Most banks set a Maximum Loan-to-Value (LTV) ratio between 75% and 85%. This means the combined total of your existing mortgage and your potential HELOC cannot exceed that percentage of your home's current market value.
Realistic Example:
Suppose your home is worth $500,000 and your lender has an 80% LTV limit.
Total allowable debt = $500,000 × 0.80 = $400,000.
If you still owe $300,000 on your mortgage, your maximum HELOC is:
$400,000 – $300,000 = $100,000.
Key Factors Affecting Your HELOC Limit
Appraised Value: Professional appraisals determine the official value lenders use for calculation.
Credit Score: Higher scores may qualify you for higher LTV percentages (e.g., 85% vs 75%).
Debt-to-Income (DTI): Lenders verify your ability to repay by comparing your monthly income to your total debt obligations.
function calculateHELOC() {
var homeValue = parseFloat(document.getElementById("homeValue").value);
var ltvLimit = parseFloat(document.getElementById("ltvLimit").value);
var mortgageBalance = parseFloat(document.getElementById("mortgageBalance").value);
var resultBox = document.getElementById("helocResultBox");
var resultDisplay = document.getElementById("helocResultValue");
var resultDetails = document.getElementById("helocResultDetails");
if (isNaN(homeValue) || isNaN(ltvLimit) || isNaN(mortgageBalance)) {
alert("Please enter valid numbers in all fields.");
return;
}
// Calculate total allowable debt based on LTV
var totalAllowableDebt = homeValue * (ltvLimit / 100);
// Subtract existing mortgage to find HELOC limit
var maxHELOC = totalAllowableDebt – mortgageBalance;
// Display results
resultBox.style.display = "block";
if (maxHELOC <= 0) {
resultDisplay.style.color = "#d32f2f";
resultDisplay.innerHTML = "$0";
resultDetails.innerHTML = "Based on the numbers provided, you currently do not have enough equity to qualify for a HELOC under this LTV limit. Your existing mortgage exceeds the allowable debt limit of $" + totalAllowableDebt.toLocaleString() + ".";
} else {
resultDisplay.style.color = "#2e7d32";
resultDisplay.innerHTML = "$" + maxHELOC.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultDetails.innerHTML = "Lenders may allow a total debt of $" + totalAllowableDebt.toLocaleString() + " on this property. After accounting for your $" + mortgageBalance.toLocaleString() + " mortgage, you have approximately $" + maxHELOC.toLocaleString() + " in available credit.";
}
// Scroll to results on mobile
resultBox.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}