Home Equity Loan Calculator
See how much equity you can borrow and what the loan would cost.
Borrowing against your equity
A home equity loan lets you borrow against the part of your home you own outright (the equity). You get a lump sum and repay it with fixed payments. Lenders usually cap your total borrowing, including your first mortgage, at around 80% to 85% of the home’s value.
Example
A home worth 400,000 with a 200,000 mortgage, and a lender limit of 85%, can borrow up to 140,000 (340,000 minus 200,000). A 50,000 loan at 8.5% over 15 years costs about 492 a month and about 38,627 in interest.
Your home is the security for the loan, so missing payments could put it at risk. Fees, appraisal costs and your credit score affect what you can get. Compare the rate with other options before you borrow.
Frequently asked questions
What is combined loan-to-value?
It is your mortgage plus the new loan, divided by the home's value. Lenders set a maximum, often 80% to 85%.
How is it different from a HELOC?
A home equity loan is a lump sum with a fixed payment. A HELOC is a credit line you draw on, often with a variable rate.
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