Hdfc Ltd Home Loan Calculator

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HELOC Calculator (Home Equity Line of Credit)

Most lenders allow 80% to 85% of your home's value.

Calculation Results

Total Home Equity:

Max Borrowing Capacity (at LTV):

Available HELOC Amount:

function calculateHELOC() { var homeValue = parseFloat(document.getElementById('homeValue').value); var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value); var ltvLimit = parseFloat(document.getElementById('ltvLimit').value); var resultDiv = document.getElementById('helocResult'); if (isNaN(homeValue) || isNaN(mortgageBalance) || isNaN(ltvLimit)) { alert("Please enter valid numbers in all fields."); return; } var ltvDecimal = ltvLimit / 100; var maxLendingAmount = homeValue * ltvDecimal; var availableCredit = maxLendingAmount – mortgageBalance; var totalEquity = homeValue – mortgageBalance; // Display formatting var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', }); document.getElementById('totalEquity').innerText = formatter.format(totalEquity); document.getElementById('maxCapacity').innerText = formatter.format(maxLendingAmount); if (availableCredit < 0) { document.getElementById('finalHELOC').innerText = "$0.00 (LTV limit exceeded)"; document.getElementById('finalHELOC').style.color = "#c53030"; } else { document.getElementById('finalHELOC').innerText = formatter.format(availableCredit); document.getElementById('finalHELOC').style.color = "#2b6cb0"; } resultDiv.style.display = "block"; }

What is a HELOC?

A Home Equity Line of Credit (HELOC) is a revolving line of credit that allows homeowners to borrow against the equity they have built up in their property. Unlike a traditional home equity loan, which provides a lump sum of cash, a HELOC works similarly to a credit card. You are approved for a specific limit and can draw funds as needed during a set "draw period."

How to Calculate Your Available HELOC

Lenders determine your HELOC limit by looking at your Loan-to-Value (LTV) ratio. Most banks and credit unions will allow you to borrow up to 80% or 85% of your home's total value, minus what you still owe on your primary mortgage.

The Formula: (Home Value × Max LTV %) – Existing Mortgage Balance = Your HELOC Limit

Example Calculation

Imagine your home is currently worth $400,000 and your remaining mortgage balance is $250,000. If a lender offers a HELOC with an 80% LTV limit, the math works as follows:

  • Calculate 80% of value: $400,000 × 0.80 = $320,000
  • Subtract mortgage balance: $320,000 – $250,000 = $70,000
  • Your Available HELOC: $70,000

Why Use a HELOC?

HELOCs are popular for homeowners because they typically offer lower interest rates than personal loans or credit cards. Common uses include:

  • Home Renovations: Increasing the value of the asset.
  • Debt Consolidation: Paying off high-interest credit card debt.
  • Emergency Fund: Having a safety net for unexpected medical bills or repairs.
  • Education Expenses: Funding college tuition at a lower rate than some private student loans.

Key Factors Lenders Consider

While the calculator above gives you a mathematical estimate, lenders will also evaluate other factors before approving your application:

  1. Credit Score: A higher score (usually 700+) helps secure lower interest rates.
  2. Debt-to-Income (DTI) Ratio: Lenders prefer a DTI below 43%.
  3. Income Verification: Proof of steady employment and earnings.
  4. Appraisal: A professional appraisal is usually required to verify the home's current market value.

Disclaimer: This calculator is for educational purposes only. Interest rates, closing costs, and final approval limits vary by lender and individual financial situations.

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