Warning: Your CLTV exceeds the maximum allowed limit!
Understanding Your Home Equity Loan Results
A Home Equity Loan, often called a "second mortgage," allows you to borrow against the value of your home. Use this calculator to estimate your monthly payments and see if you meet standard lender requirements.
What is CLTV?
Combined Loan-to-Value (CLTV) is the ratio of all loans secured by your home (your first mortgage + the new home equity loan) divided by the home's appraised value. Most lenders prefer a CLTV below 80% to 85%.
Example Calculation
If your home is worth $450,000 and you owe $250,000 on your primary mortgage, you have $200,000 in raw equity. However, if a lender allows an 85% CLTV, your maximum total debt is $382,500 ($450,000 x 0.85). Subtracting your current $250,000 mortgage leaves you with a maximum potential loan of $132,500.
Note: This calculator provides estimates based on fixed interest rates. Actual rates and loan approval depend on your credit score, income, and professional appraisal.
function calculateHomeEquity() {
var homeValue = parseFloat(document.getElementById('homeValue').value);
var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value);
var loanAmount = parseFloat(document.getElementById('loanAmount').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var loanTermYears = parseFloat(document.getElementById('loanTerm').value);
var maxLtv = parseFloat(document.getElementById('maxLtv').value);
if (isNaN(homeValue) || isNaN(mortgageBalance) || isNaN(loanAmount) || isNaN(interestRate)) {
alert("Please enter valid numeric values.");
return;
}
// CLTV Calculation
var totalDebt = mortgageBalance + loanAmount;
var cltv = (totalDebt / homeValue) * 100;
// Monthly Payment Calculation (Standard Amortization)
var monthlyRate = (interestRate / 100) / 12;
var numberOfPayments = loanTermYears * 12;
var monthlyPayment = 0;
if (monthlyRate === 0) {
monthlyPayment = loanAmount / numberOfPayments;
} else {
monthlyPayment = loanAmount * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);
}
var totalPaid = monthlyPayment * numberOfPayments;
var totalInterest = totalPaid – loanAmount;
// Update Display
document.getElementById('results-area').style.display = 'block';
document.getElementById('monthlyPayment').innerText = '$' + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('cltvResult').innerText = cltv.toFixed(2) + '%';
document.getElementById('totalInterest').innerText = '$' + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Warning Logic
var warningEl = document.getElementById('ltvWarning');
if (cltv > maxLtv) {
warningEl.style.display = 'block';
warningEl.innerText = "Warning: Your CLTV (" + cltv.toFixed(2) + "%) exceeds the " + maxLtv + "% limit!";
} else {
warningEl.style.display = 'none';
}
}