Home Equity Loan Calculator
Estimate your monthly payments, total interest, and loan costs for a home equity loan or line of credit. Adjust the loan amount, term, and interest rate to compare different scenarios.
Loan Summary
| Home Equity | $0.00 |
|---|---|
| Loan-to-Value Ratio | 0% |
| Monthly Payment | $0.00 |
| Total Interest | $0.00 |
| Total of Payments | $0.00 |
| Total Cost (with fees) | $0.00 |
About Home Equity Loans
A home equity loan allows you to borrow money using the equity in your home as collateral. Equity is the difference between your home's current market value and the amount you owe on your mortgage. Home equity loans typically have fixed interest rates and fixed monthly payments over a set term.
How Home Equity Loans Work
When you take out a home equity loan:
- You receive a lump sum of money upfront
- You make fixed monthly payments for the loan term
- The loan is secured by your home, meaning the lender can foreclose if you don't repay
- Interest may be tax deductible if used for home improvements (consult a tax advisor)
Home Equity vs. HELOC
A Home Equity Line of Credit (HELOC) works differently from a traditional home equity loan:
- HELOC: Revolving credit line with variable interest rate, draw period (usually 10 years) followed by repayment period
- Home Equity Loan: Fixed amount with fixed interest rate and fixed monthly payments
Loan-to-Value Ratio (LTV)
Lenders typically allow you to borrow up to 80-85% of your home's value when combining your first mortgage and home equity loan. This calculator helps you understand how much you might qualify to borrow based on your home's value and current mortgage balance.