Estimate your potential Wells Fargo Home Equity Line of Credit (HELOC) borrowing power.
Wells Fargo typically allows up to 80% LTV for HELOCs.
Understanding Your Wells Fargo HELOC Potential
A Home Equity Line of Credit (HELOC) allows you to borrow against the equity you've built in your home. Wells Fargo, like other lenders, uses a calculation based on your home's value and any existing mortgage to determine how much you can borrow. This calculator helps you estimate your potential HELOC borrowing limit based on common lending practices.
How the Calculation Works:
The primary factor in determining your HELOC amount is the Loan-to-Value (LTV) ratio. The LTV is the ratio of the total loan amount secured by your property to the property's appraised value.
The formula used by this calculator is:
Maximum HELOC Amount = (Current Home Value * Desired LTV Ratio / 100) - Existing Mortgage Balance
Let's break down the inputs:
Current Home Value: This is the estimated market value of your home. You can get this from a recent appraisal, a comparative market analysis (CMA) from a real estate agent, or online valuation tools.
Existing Mortgage Balance: This is the total amount you currently owe on your primary mortgage.
Desired LTV Ratio (%): This is the maximum percentage of your home's value that you want the lender to finance through all combined loans (your primary mortgage plus the HELOC). Lenders set limits to mitigate their risk. Wells Fargo generally offers HELOCs up to 80% LTV, but this can vary based on your creditworthiness and other factors.
Interpreting the Result:
The calculator will output your estimated Maximum HELOC Potential. This is the maximum amount you might be approved for by Wells Fargo, assuming you meet their other lending criteria (like credit score, income, and debt-to-income ratio).
Important Considerations:
This calculator provides an estimate only. Your actual approved HELOC amount may differ.
Wells Fargo will conduct its own appraisal and underwriting process.
The calculation assumes your existing mortgage balance is the only other debt secured by your home.
HELOCs have a draw period (when you can borrow) and a repayment period (when you pay back the principal and interest). Interest rates can be variable.
Always consult directly with Wells Fargo or a qualified financial advisor for personalized advice and definitive loan terms.
function calculateHELOC() {
var homeValue = parseFloat(document.getElementById("homeValue").value);
var existingMortgageBalance = parseFloat(document.getElementById("existingMortgageBalance").value);
var loanToValueRatio = parseFloat(document.getElementById("loanToValueRatio").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = "; // Clear previous results
// Input validation
if (isNaN(homeValue) || homeValue <= 0) {
resultDiv.innerHTML = "Please enter a valid current home value.";
return;
}
if (isNaN(existingMortgageBalance) || existingMortgageBalance < 0) {
resultDiv.innerHTML = "Please enter a valid existing mortgage balance.";
return;
}
if (isNaN(loanToValueRatio) || loanToValueRatio 100) {
resultDiv.innerHTML = "Please enter a desired LTV ratio between 1 and 100.";
return;
}
// Calculate maximum allowed loan amount based on LTV
var maxAllowedLoanAmount = homeValue * (loanToValueRatio / 100);
// Calculate potential HELOC amount
var helocPotential = maxAllowedLoanAmount – existingMortgageBalance;
// Ensure HELOC potential is not negative
if (helocPotential < 0) {
helocPotential = 0;
}
// Format the output nicely
var formattedHelocPotential = helocPotential.toLocaleString(undefined, {
style: 'currency',
currency: 'USD'
});
resultDiv.innerHTML = "Estimated Maximum HELOC Potential: " + formattedHelocPotential + "";
}