Borrowable equity and its payment
Home Equity Loan Calculator
Your borrowable equity is the appraised value times the lender's maximum loan-to-value, minus what you still owe. Enter the same numbers a lender would and see both the ceiling and the payment on what you plan to draw.
How this is calculated
- Borrowable equity = value × max LTV − existing mortgage balance.
- The draw is capped at that ceiling and amortised over the term as a fixed-rate second mortgage.
- A HELOC is different: interest-only during the draw period, then a fully amortising repayment period.
Before you go
Home equity loan or HELOC?
A home equity loan gives one lump sum at a fixed rate; a HELOC is a revolving line, usually variable, with a draw period. Projects with staged costs suit a line; a single renovation suits a fixed loan.
How much can I borrow?
Most lenders cap the combined loan-to-value at 80-85%, some reach 90% with a higher rate. The ceiling also depends on credit and income, not just the property.
Is the interest deductible?
In the US, interest is generally deductible only when the money buys, builds or substantially improves the home, and only up to the debt limits. Ask a tax professional about your case.
Estimation only. Rates, taxes and fees in your actual offer will differ, and this tool is not financial advice or a loan quote.