Estimate your available Home Equity Line of Credit borrowing power.
Estimated HELOC Limit:
$0.00
Understanding Your Home Equity Line of Credit (HELOC)
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, which provides a lump sum, a HELOC allows you to borrow as needed, repay, and borrow again—similar to a credit card but with significantly lower interest rates.
How is a HELOC Limit Calculated?
Lenders determine your borrowing power based on the Combined Loan-to-Value (CLTV) ratio. This ratio represents the total debt secured by your home (your primary mortgage plus the HELOC) divided by the home's appraised value.
The standard formula used by this calculator is:
HELOC Limit = (Home Value × Max CLTV %) – Current Mortgage Balance
Realistic Example
Imagine your home is worth $500,000 and you still owe $300,000 on your mortgage. If your lender allows an 85% CLTV:
85% of $500,000 = $425,000 (Maximum total debt allowed)
$425,000 – $300,000 (Current Mortgage) = $125,000
In this scenario, your maximum HELOC limit would be $125,000.
Key Factors Lenders Consider
Credit Score: Higher scores typically unlock higher CLTV limits (up to 90%) and lower interest rates.
Debt-to-Income (DTI) Ratio: Lenders want to ensure you have enough monthly income to cover all debt payments.
Appraised Value: While you can estimate your home's value, the lender will require a professional appraisal.
function calculateHELOC() {
var homeValue = parseFloat(document.getElementById('homeValue').value);
var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value);
var cltvLimit = parseFloat(document.getElementById('cltvLimit').value);
var minCreditLine = parseFloat(document.getElementById('minCreditLine').value);
var resultBox = document.getElementById('helocResultBox');
var amountDisplay = document.getElementById('helocAmount');
var descriptionDisplay = document.getElementById('resultDescription');
if (isNaN(homeValue) || isNaN(mortgageBalance) || isNaN(cltvLimit)) {
alert("Please enter valid numeric values for all fields.");
return;
}
// Calculation logic
var decimalCLTV = cltvLimit / 100;
var totalAllowedDebt = homeValue * decimalCLTV;
var maxHELOC = totalAllowedDebt – mortgageBalance;
resultBox.style.display = "block";
if (maxHELOC <= 0) {
amountDisplay.innerText = "$0.00";
amountDisplay.style.color = "#dc3545";
descriptionDisplay.innerText = "Based on your current mortgage balance and the CLTV limit, you do not have sufficient equity to open a HELOC at this time.";
} else if (maxHELOC < minCreditLine) {
amountDisplay.innerText = "$" + maxHELOC.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
amountDisplay.style.color = "#ffc107";
descriptionDisplay.innerText = "Your estimated equity is available, but it is below your specified minimum required credit line ($" + minCreditLine.toLocaleString() + "). Many lenders require a minimum line of $10,000.";
} else {
amountDisplay.innerText = "$" + maxHELOC.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
amountDisplay.style.color = "#28a745";
descriptionDisplay.innerText = "Success! You have approximately $" + maxHELOC.toLocaleString() + " in accessible equity based on a " + cltvLimit + "% CLTV limit.";
}
// Smooth scroll to result
resultBox.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}