Home Credit Personal Loan Interest Rate Calculator
by
Home Equity Loan Calculator
70%
75%
80% (Typical)
85%
90%
Your Equity Results
Total Home Equity:
$0
Current LTV Ratio:
0%
Maximum Potential Loan Amount:
$0
*Based on your selected LTV limit of 80%
How Does a Home Equity Loan Work?
A home equity loan, often referred to as a "second mortgage," allows homeowners to borrow against the value of their property. The amount you can borrow is determined by the difference between your home's current market value and the remaining balance on your primary mortgage.
The 80% LTV Rule
Most lenders follow the Loan-to-Value (LTV) rule. Typically, banks will allow you to borrow up to 80% of your home's total value, including your existing mortgage. For example, if your home is worth $500,000, 80% of that value is $400,000. If you still owe $300,000 on your mortgage, you could potentially qualify for a $100,000 home equity loan.
Calculation Example
Home Appraisal: $400,000
Current Mortgage: $250,000
LTV Limit (80%): $320,000
Available Equity: $320,000 – $250,000 = $70,000
Key Benefits of Home Equity Loans
Unlike personal loans or credit cards, home equity loans typically offer much lower interest rates because the debt is secured by your home. They are ideal for large, one-time expenses such as:
Kitchen or Bath Remodels
Debt Consolidation
Education Expenses
Emergency Medical Bills
Roof Replacements
Investment Property Down Payments
function calculateHomeEquity() {
var homeValue = parseFloat(document.getElementById('homeValue').value);
var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value);
var ltvLimit = parseFloat(document.getElementById('ltvLimit').value);
if (isNaN(homeValue) || homeValue <= 0) {
alert("Please enter a valid home value.");
return;
}
if (isNaN(mortgageBalance)) {
mortgageBalance = 0;
}
// Calculations
var totalEquity = homeValue – mortgageBalance;
var currentLTV = (mortgageBalance / homeValue) * 100;
var maxLtvAmount = homeValue * (ltvLimit / 100);
var availableLoanAmount = maxLtvAmount – mortgageBalance;
if (availableLoanAmount < 0) {
availableLoanAmount = 0;
}
// Update UI
document.getElementById('totalEquityDisplay').innerText = "$" + totalEquity.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('currentLtvDisplay').innerText = currentLTV.toFixed(1) + "%";
document.getElementById('maxLoanDisplay').innerText = "$" + availableLoanAmount.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('limitSpan').innerText = ltvLimit;
// Show results
document.getElementById('results-section').style.display = 'block';
// Scroll to results
document.getElementById('results-section').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}