Bank of America HELOC Estimator
Use this calculator to estimate your potential Home Equity Line of Credit (HELOC) limit and your estimated monthly interest-only payment based on common Bank of America HELOC criteria. Understand your home equity, maximum eligible credit, and what your initial draw might cost you each month.
Understanding Your Bank of America HELOC Estimate
A Home Equity Line of Credit (HELOC) from institutions like Bank of America allows you to borrow against the equity you've built in your home. Unlike a traditional loan, a HELOC is a revolving line of credit, meaning you can borrow, repay, and re-borrow funds up to your approved credit limit during a specific "draw period."
Key Factors in Your HELOC Calculation:
- Current Home Value: This is the estimated market value of your property. The higher your home's value, the more equity you potentially have.
- Outstanding Mortgage Balance: The remaining amount you owe on your primary mortgage. Your equity is essentially your home's value minus this balance.
- Desired HELOC Credit Limit: The maximum amount you wish to be approved for. This calculator will help you see if your desired limit is feasible based on your home equity and the bank's criteria.
- Bank's Maximum Combined Loan-to-Value (LTV) Ratio: Banks, including Bank of America, typically have a maximum LTV ratio they will allow for a HELOC. This ratio combines your primary mortgage balance and the HELOC limit. For example, an 80% LTV means the total of your mortgage and HELOC cannot exceed 80% of your home's value. This is a critical factor in determining your maximum eligible HELOC.
- Estimated Initial Draw Amount: While a HELOC is a line of credit, you often draw an initial lump sum. This input helps estimate your immediate monthly interest payment.
- Current HELOC APR (Annual Percentage Rate): HELOCs typically have variable interest rates, meaning they can change over time. This calculator uses a current APR to estimate your monthly interest-only payment on any drawn amount.
How the Calculator Works:
This tool first calculates your available home equity by subtracting your outstanding mortgage balance from your home's current value. Then, it determines your maximum eligible HELOC limit based on the bank's specified maximum combined LTV ratio. Your actual HELOC limit will be the lower of your desired limit and the maximum eligible limit.
The estimated monthly payment shown is an interest-only payment on your initial draw amount. During the draw period of a HELOC, many borrowers opt to pay only the interest on the amount they've used. Once the draw period ends, you typically enter a repayment period where you'll pay both principal and interest.
Example Scenario:
Let's say your home value is $400,000, and you owe $200,000 on your mortgage. You desire a $50,000 HELOC, and Bank of America's maximum combined LTV is 80%. If you initially draw $10,000 at an 8.5% APR:
- Available Home Equity: $400,000 – $200,000 = $200,000
- Maximum Eligible HELOC: ($400,000 * 0.80) – $200,000 = $320,000 – $200,000 = $120,000
- Actual HELOC Limit: The lower of your desired $50,000 and the eligible $120,000 is $50,000.
- Estimated Monthly Interest Payment: ($10,000 * 0.085) / 12 = $70.83
This calculator provides an estimate. For precise figures and to apply for a HELOC, always consult directly with Bank of America or your chosen financial institution.
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function calculateHELOC() {
var homeValue = parseFloat(document.getElementById('homeValue').value);
var outstandingMortgage = parseFloat(document.getElementById('outstandingMortgage').value);
var desiredHELOCLimit = parseFloat(document.getElementById('desiredHELOCLimit').value);
var maxLTV = parseFloat(document.getElementById('maxLTV').value);
var initialDrawAmount = parseFloat(document.getElementById('initialDrawAmount').value);
var currentAPR = parseFloat(document.getElementById('currentAPR').value);
var resultsDiv = document.getElementById('helocResults');
resultsDiv.innerHTML = "; // Clear previous results
// Input validation
if (isNaN(homeValue) || homeValue <= 0) {
resultsDiv.innerHTML = 'Please enter a valid Current Home Value.';
return;
}
if (isNaN(outstandingMortgage) || outstandingMortgage < 0) {
resultsDiv.innerHTML = 'Please enter a valid Outstanding Mortgage Balance.';
return;
}
if (isNaN(desiredHELOCLimit) || desiredHELOCLimit <= 0) {
resultsDiv.innerHTML = 'Please enter a valid Desired HELOC Credit Limit.';
return;
}
if (isNaN(maxLTV) || maxLTV 100) {
resultsDiv.innerHTML = 'Please enter a valid Bank\'s Maximum Combined LTV (0-100%).';
return;
}
if (isNaN(initialDrawAmount) || initialDrawAmount < 0) {
resultsDiv.innerHTML = 'Please enter a valid Estimated Initial Draw Amount.';
return;
}
if (isNaN(currentAPR) || currentAPR = homeValue) {
resultsDiv.innerHTML = 'Outstanding Mortgage Balance cannot be greater than or equal to Current Home Value for HELOC eligibility.';
return;
}
// Calculations
var availableEquity = homeValue – outstandingMortgage;
var maxCombinedLoanAmount = homeValue * (maxLTV / 100);
var maxEligibleHELOC = maxCombinedLoanAmount – outstandingMortgage;
// Ensure maxEligibleHELOC is not negative
if (maxEligibleHELOC actualHELOCLimit) {
resultsDiv.innerHTML = 'Your Estimated Initial Draw Amount ($' + initialDrawAmount.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ') exceeds your Actual HELOC Limit ($' + actualHELOCLimit.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + '). Please adjust your draw amount.';
return;
}
var monthlyInterestPayment = (initialDrawAmount * (currentAPR / 100)) / 12;
// Display results
var resultsHTML = '
Your HELOC Estimate:
';
resultsHTML += '
Available Home Equity: $' + availableEquity.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ";
resultsHTML += '
Maximum Eligible HELOC Limit (based on LTV): $' + maxEligibleHELOC.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ";
resultsHTML += '
Your Actual HELOC Limit: $' + actualHELOCLimit.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ";
if (actualHELOCLimit === 0) {
resultsHTML += 'Based on your inputs, you may not be eligible for a HELOC at this time.';
} else if (actualHELOCLimit 0 && actualHELOCLimit > 0) {
resultsHTML += '
Estimated Monthly Interest-Only Payment (on initial draw): $' + monthlyInterestPayment.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ";
resultsHTML += '
This payment is an estimate for the interest-only portion during the draw period. Principal repayment will be required later.';
} else if (actualHELOCLimit > 0) {
resultsHTML += '
Enter an "Estimated Initial Draw Amount" to see your potential monthly interest-only payment.';
}
resultsDiv.innerHTML = resultsHTML;
}