Estimate your maximum Home Equity Line of Credit amount and interest-only payments.
Maximum HELOC Amount$0.00
Estimated Monthly Payment*$0.00
*Interest-only during draw period
Total Available Equity$0.00
Understanding Your Home Equity Line of Credit (HELOC)
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home. Unlike a standard home equity loan, which provides a lump sum, a HELOC allows you to borrow as needed, repay, and borrow again—much like a credit card, but usually with much lower interest rates.
How the HELOC Calculation Works
Lenders use a specific formula to determine how much you can borrow. This calculation relies primarily on your Loan-to-Value (LTV) Ratio. Most lenders will allow a combined LTV of 75% to 85% of your home's current appraised value.
Formula: (Home Value × Max LTV %) – Current Mortgage Balance = Available HELOC
Key Terms for HELOC Borrowers
Draw Period: Usually the first 10 years where you can take money out. Most HELOCs only require interest-only payments during this time.
Repayment Period: The phase (often 20 years) following the draw period where you can no longer withdraw funds and must pay back both principal and interest.
Variable Interest Rate: HELOC rates typically fluctuate based on the Prime Rate, meaning your monthly payments can change over time.
Example HELOC Scenario
If your home is worth $400,000 and your lender allows an 80% LTV, your total borrowing limit is $320,000. If you still owe $200,000 on your first mortgage, your maximum HELOC would be $120,000 ($320k – $200k).
function calculateHeloc() {
// Get Input Values
var homeValue = parseFloat(document.getElementById('homeValue').value);
var ltvLimit = parseFloat(document.getElementById('ltvLimit').value) / 100;
var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value);
var interestRate = parseFloat(document.getElementById('interestRate').value) / 100;
// Validate inputs
if (isNaN(homeValue) || isNaN(ltvLimit) || isNaN(mortgageBalance) || isNaN(interestRate)) {
alert("Please enter valid numeric values for all fields.");
return;
}
// Calculation Logic
var totalAllowedDebt = homeValue * ltvLimit;
var maxCreditLine = totalAllowedDebt – mortgageBalance;
var totalEquity = homeValue – mortgageBalance;
// Logic for if mortgage exceeds LTV limit
if (maxCreditLine < 0) {
maxCreditLine = 0;
}
// Monthly Interest-Only Payment Calculation (assuming full line is used)
// Formula: (Balance * Rate) / 12
var monthlyPayment = (maxCreditLine * interestRate) / 12;
// Formatting currency
var currencyFormatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
// Display Results
document.getElementById('maxCreditDisplay').innerText = currencyFormatter.format(maxCreditLine);
document.getElementById('monthlyPaymentDisplay').innerText = currencyFormatter.format(monthlyPayment);
document.getElementById('totalEquityDisplay').innerText = currencyFormatter.format(totalEquity);
// Show result container
document.getElementById('heloc-results').style.display = 'block';
// Smooth scroll to results
document.getElementById('heloc-results').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}