Home Equity Loan Calculator

A home equity loan is a fixed-rate second mortgage that lets you borrow against your home's equity as a lump sum. It keeps your existing first mortgage intact, and you make a separate fixed monthly payment on the new loan over a set term. Because the loan is secured by your home, it's important to understand the payment, total cost, and your combined loan-to-value.

CLTV is your combined debt (your current mortgage balance plus the new home equity loan) divided by your home's estimated value, expressed as a percentage. For example, a $300,000 mortgage plus a $50,000 home equity loan on a $500,000 home is a 70% CLTV. Many home equity programs cap combined borrowing at or below 80% CLTV, though some programs allow higher ratios.

The amount depends on your home's value, your current mortgage balance, and the lender's maximum combined loan-to-value (CLTV) limit. Many programs cap combined borrowing at or below 80% CLTV. This calculator shows an 80% planning limit and the estimated maximum available equity, though some programs allow higher ratios. Availability and terms depend on the lender, loan program, and your qualifications.

A home equity loan (HELOAN) provides a lump sum with a fixed rate and a fixed monthly payment over a set term. A home equity line of credit (HELOC) is a revolving line of credit you can draw from as needed, typically with a variable rate during the draw period. A HELOAN offers payment predictability, while a HELOC offers flexibility. The right choice depends on how you plan to use the funds.

A home equity loan is a separate second mortgage that keeps your existing first mortgage intact, so you keep your current rate and add a second payment. A cash-out refinance replaces your entire first mortgage with a new, larger loan and gives you the difference in cash. If your current first-mortgage rate is favorable, a home equity loan lets you access equity without changing it. The right choice depends on your current rate, equity, and goals.

Homeowners commonly use home equity loan proceeds for home improvements, debt consolidation, education expenses, or other major planned costs. Because the loan is secured by your home, it's important to weigh the purpose, the new monthly payment, and the long-term cost. A mortgage professional can help you evaluate whether a home equity loan fits your goals.

A home equity loan typically involves closing costs, which may include lender fees, appraisal costs, title charges, and recording fees. This calculator lets you estimate closing costs and choose whether they are paid upfront or financed into the loan. Financing costs increases the loan balance and the total interest paid over the term.

Lenders commonly review your credit, income, assets, property value, and combined equity. Requirements vary by lender and loan program. A home equity loan also typically requires sufficient combined equity to support the new loan amount. Your lending professional can provide specific guidance for your scenario.

No. The result is an informational estimate for educational and planning purposes only. It is not a loan estimate, approval, rate lock, or commitment to lend. Actual rates, payments, closing costs, cash available, and eligibility are determined following review by the appropriate licensed lending professional.