Estimate how much credit you can access based on your home's current value.
Understanding Your HELOC Calculation
A Home Equity Line of Credit (HELOC) is a revolving line of credit that uses your home as collateral. Unlike a standard home equity loan, a HELOC allows you to borrow, repay, and borrow again during a set "draw period."
How Lenders Determine Your HELOC Amount
Lenders don't let you borrow 100% of your home's value. Instead, they look at the Combined Loan-to-Value (CLTV) ratio. This is the sum of all loans on the property (your first mortgage + the requested HELOC) divided by the home's appraised value.
The standard formula used in this calculator is:
(Home Value × CLTV Limit) - Existing Mortgage Balance = Available HELOC Amount
In this case, you would qualify for a line of credit up to $100,000.
Factors That Affect Your HELOC Limit
Credit Score: Higher scores often unlock higher CLTV limits (up to 90%).
Debt-to-Income (DTI) Ratio: Lenders ensure your monthly income can support potential payments.
Appraisal: A professional appraisal will confirm the actual market value used in the calculation.
Property Type: Primary residences usually allow for higher equity extraction than investment properties.
Why Use a HELOC?
HELOCs are popular for home renovations, consolidating high-interest debt, or as an emergency fund. Because they are secured by your home, the interest rates are typically much lower than credit cards or personal loans.
function calculateHELOC() {
var homeValue = parseFloat(document.getElementById("homeValue").value);
var mortgageBalance = parseFloat(document.getElementById("mortgageBalance").value);
var cltvLimit = parseFloat(document.getElementById("cltvLimit").value);
var resultDiv = document.getElementById("heloc-result-area");
var outputContent = document.getElementById("heloc-output-content");
// Validation
if (isNaN(homeValue) || isNaN(mortgageBalance) || isNaN(cltvLimit)) {
alert("Please enter valid numerical values.");
return;
}
if (homeValue <= 0 || cltvLimit <= 0) {
alert("Home value and CLTV limit must be greater than zero.");
return;
}
// Calculation Logic
var maxDebtAllowed = homeValue * (cltvLimit / 100);
var availableHELOC = maxDebtAllowed – mortgageBalance;
// Formatting for Currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
maximumFractionDigits: 0
});
resultDiv.style.display = "block";
if (availableHELOC <= 0) {
outputContent.innerHTML = "
Low Available Equity
" +
"Based on a " + cltvLimit + "% CLTV limit, your current mortgage balance exceeds or matches the borrowing threshold. You may need more equity or a higher CLTV lender to qualify.";
} else {
outputContent.innerHTML = "
Estimated Available HELOC
" +
"
" + formatter.format(availableHELOC) + "
" +
"Your Maximum Total Debt Limit: " + formatter.format(maxDebtAllowed) + " (" + cltvLimit + "% of value)" +
"Remaining Mortgage: " + formatter.format(mortgageBalance) + "" +
"*This is an estimate. Lenders will also consider your credit score, income, and a formal appraisal.";
}
// Smooth scroll to result
resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}