#heloc-calculator-wrapper .calc-header { background-color: #1a365d; color: #ffffff; padding: 25px; text-align: center; }
#heloc-calculator-wrapper .calc-header h2 { margin: 0; font-size: 24px; color: #ffffff; }
#heloc-calculator-wrapper .calc-body { padding: 30px; }
#heloc-calculator-wrapper .input-group { margin-bottom: 20px; }
#heloc-calculator-wrapper label { display: block; font-weight: 600; margin-bottom: 8px; color: #2d3748; }
#heloc-calculator-wrapper input { width: 100%; padding: 12px; border: 1px solid #cbd5e0; border-radius: 5px; font-size: 16px; box-sizing: border-box; }
#heloc-calculator-wrapper .btn-calculate { width: 100%; background-color: #2b6cb0; color: white; border: none; padding: 15px; font-size: 18px; font-weight: bold; border-radius: 5px; cursor: pointer; transition: background-color 0.2s; }
#heloc-calculator-wrapper .btn-calculate:hover { background-color: #2c5282; }
#heloc-calculator-wrapper #result-area { margin-top: 25px; padding: 20px; border-radius: 5px; display: none; text-align: center; }
#heloc-calculator-wrapper .success-box { background-color: #f0fff4; border: 1px solid #68d391; }
#heloc-calculator-wrapper .error-box { background-color: #fff5f5; border: 1px solid #feb2b2; }
#heloc-calculator-wrapper .result-value { font-size: 28px; font-weight: 800; color: #2f855a; margin: 10px 0; }
#heloc-calculator-wrapper .article-section { padding: 30px; background-color: #f7fafc; border-top: 1px solid #e1e4e8; }
#heloc-calculator-wrapper h3 { color: #2d3748; margin-top: 25px; }
#heloc-calculator-wrapper p { margin-bottom: 15px; }
#heloc-calculator-wrapper ul { margin-bottom: 15px; padding-left: 20px; }
#heloc-calculator-wrapper .highlight { color: #2b6cb0; font-weight: bold; }
function calculateHELOC() {
var homeValue = document.getElementById("homeValue").value;
var mortgageBalance = document.getElementById("mortgageBalance").value;
var ltvLimit = document.getElementById("ltvLimit").value;
var resultArea = document.getElementById("result-area");
if (!homeValue || !mortgageBalance || !ltvLimit) {
resultArea.style.display = "block";
resultArea.className = "error-box";
resultArea.innerHTML = "Please enter values for all fields to see your results.";
return;
}
var val = parseFloat(homeValue);
var bal = parseFloat(mortgageBalance);
var ltv = parseFloat(ltvLimit) / 100;
if (isNaN(val) || isNaN(bal) || isNaN(ltv)) {
resultArea.style.display = "block";
resultArea.className = "error-box";
resultArea.innerHTML = "Please enter valid numeric values.";
return;
}
var totalBorrowingPower = val * ltv;
var maxHeloc = totalBorrowingPower – bal;
resultArea.style.display = "block";
if (maxHeloc <= 0) {
resultArea.className = "error-box";
resultArea.innerHTML = "Insufficient Equity: Based on an LTV of " + (ltv * 100) + "%, your current mortgage balance exceeds the allowable borrowing limit. You may need more home appreciation or a lower mortgage balance to qualify.";
} else {
resultArea.className = "success-box";
var formattedResult = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' }).format(maxHeloc);
resultArea.innerHTML = "
HELOC Borrowing Power Calculator
How a HELOC Calculator Works
A Home Equity Line of Credit (HELOC) is a revolving line of credit that allows homeowners to borrow against the equity they have built in their property. Unlike a standard home equity loan, a HELOC functions much like a credit card where you can spend up to a limit, repay it, and spend again during the "draw period."
To determine how much you can borrow, lenders typically use a Combined Loan-to-Value (CLTV) ratio. Most lenders will allow you to borrow up to 80% or 85% of your home's total value, including your existing mortgage.
The Formula for HELOC Eligibility
The calculation follows this specific mathematical path:
- Step 1: Multiply your home's current market value by the lender's LTV limit (e.g., 0.80 for 80%).
- Step 2: Subtract your existing mortgage balance from that number.
- Step 3: The remaining balance is your potential HELOC credit limit.
Example Calculation
If your home is worth $500,000 and your lender allows an 80% LTV, your total borrowing limit is $400,000 ($500,000 x 0.80). If you still owe $300,000 on your primary mortgage, your maximum HELOC amount would be:
$400,000 – $300,000 = $100,000
Key Factors Lenders Consider
While equity is the primary factor, lenders also evaluate the following before approving a line of credit:
- Credit Score: A higher score (usually 700+) secures better interest rates.
- Debt-to-Income (DTI) Ratio: Lenders prefer a DTI below 43%.
- Property Type: Primary residences usually qualify for higher LTVs than investment properties.
- Appraisal: A professional appraisal will be required to verify the actual value of the home.
Your Estimated Maximum HELOC Limit:
" + formattedResult + "
Total borrowing limit (CLTV): " + new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' }).format(totalBorrowingPower) + "
";
}
}