A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home. It allows you to borrow money as needed, up to a certain limit, and repay it over time. A HELOC is different from a home equity loan in that it functions more like a credit card. You can draw funds, repay them, and then borrow again, all within your credit limit. The interest rate on a HELOC is typically variable, meaning it can fluctuate over the life of the loan based on market conditions. This calculator helps you estimate the potential interest costs based on different variable rates and outstanding balances.
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function calculateHelocRates() {
var creditLimit = parseFloat(document.getElementById("creditLimit").value);
var currentBalance = parseFloat(document.getElementById("currentBalance").value);
var variableRate = parseFloat(document.getElementById("variableRate").value);
var drawPeriodMonths = parseInt(document.getElementById("drawPeriodMonths").value);
var repaymentPeriodMonths = parseInt(document.getElementById("repaymentPeriodMonths").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
// Input validation
if (isNaN(creditLimit) || creditLimit <= 0) {
resultDiv.innerHTML = "Please enter a valid HELOC Credit Limit.";
return;
}
if (isNaN(currentBalance) || currentBalance creditLimit) {
resultDiv.innerHTML = "Current Outstanding Balance cannot exceed the HELOC Credit Limit.";
return;
}
if (isNaN(variableRate) || variableRate < 0) {
resultDiv.innerHTML = "Please enter a valid Estimated Annual Variable Rate.";
return;
}
if (isNaN(drawPeriodMonths) || drawPeriodMonths <= 0) {
resultDiv.innerHTML = "Please enter a valid Draw Period in months.";
return;
}
if (isNaN(repaymentPeriodMonths) || repaymentPeriodMonths 0) {
totalInterestDrawPeriod = balanceForDrawPeriod * monthlyRate * drawPeriodMonths;
}
// Calculate estimated minimum payment during draw period (often interest-only)
var monthlyInterestPaymentDraw = balanceForDrawPeriod * monthlyRate;
// Calculate estimated principal and interest payment during repayment period
var totalBalanceForRepayment = currentBalance; // For simplicity, assuming full balance is repaid over repayment period. In reality, principal payments during draw period would reduce this.
var monthlyPaymentRepayment = (totalBalanceForRepayment * monthlyRate) / (1 – Math.pow(1 + monthlyRate, -repaymentPeriodMonths));
var totalInterestRepaymentPeriod = (monthlyPaymentRepayment * repaymentPeriodMonths) – totalBalanceForRepayment;
var totalEstimatedInterest = totalInterestDrawPeriod + totalInterestRepaymentPeriod;
resultDiv.innerHTML = `