Home Equity Loan Calculator
Free home equity loan calculator: how much you can borrow against your home, the fixed monthly payment, the total interest and your combined loan-to-value.
What it does
A home equity loan lets you borrow a lump sum against the part of your home you own, at a fixed rate and with a fixed monthly payment, usually over 5 to 30 years. Lenders usually let the mortgage plus the new loan reach 80% to 90% of the home value. This calculator shows how much you could borrow, the monthly payment, the total interest and the combined loan-to-value after the loan.
How to use it
- Type the home value, the mortgage balance and the lender's maximum combined loan-to-value.
- Type the amount you want to borrow, the interest rate and the term.
- See the monthly payment, the total interest and the combined loan-to-value.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
Home equity loan or HELOC?
A home equity loan pays the whole amount at once, at a fixed rate and with a fixed payment from the start. A HELOC is a credit line with a variable rate that you draw as needed. The loan suits one large expense with a known cost.
How much equity do I need?
Most lenders want you to keep at least 10% to 20% of the home value as equity after the loan, so the mortgage plus the new loan stays under 80% to 90% of the value. Credit score and income also matter.
Is the interest tax deductible?
Only if you itemize and use the money to buy, build or substantially improve the home that secures the loan, within the $750,000 mortgage debt limit. Interest on money used for a car, a trip or credit cards is not deductible.
What are the risks?
Your home is the collateral: if you cannot pay, you can lose it. Borrowing against the home to pay unsecured debts turns them into debt that can lead to foreclosure, so plan the payment carefully.
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