HELOC Calculator

Calculate your available Home Equity Line of Credit (HELOC) based on your home value and existing mortgage. See interest-only payments during the draw period and full payments during the repayment period.

Available Credit = (Home Value * LTV Limit%) - Mortgage Balance. Interest-Only Payment = Borrowed Amount * (Interest Rate / 12). P&I Payment = Borrowed Amount * [r(1+r)^n] / [(1+r)^n - 1], where r = monthly rate, n = repayment months.
Example: $350,000 home, $220,000 mortgage, 85% LTV limit. Available credit = ($350,000 * 0.85) - $220,000 = $77,500. If borrowing $50,000 at 8.5% for 10-year draw + 20-year repayment: Interest-only = $354/month, then P&I = $435/month.

What is a HELOC?

A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home equity. It works like a credit card with a credit limit based on your home's value minus what you owe. You can borrow, repay, and borrow again during the draw period (typically 10 years).

How much can I borrow with a HELOC?

Most lenders allow you to borrow up to 80-90% of your home's appraised value minus your existing mortgage balance. For example, with a $300,000 home and $200,000 mortgage, at 80% LTV you could access up to $40,000 ($300,000 * 0.80 - $200,000).

What is the difference between draw period and repayment period?

During the draw period (usually 10 years), you can borrow funds and typically make interest-only payments. After the draw period ends, you enter the repayment period (usually 20 years) where you can no longer borrow and must repay both principal and interest.

Are HELOC interest rates fixed or variable?

Most HELOCs have variable interest rates tied to the prime rate, meaning your payment can fluctuate. Some lenders offer fixed-rate options for a portion of your balance. Variable rates make HELOCs riskier if interest rates rise significantly.

What are HELOCs commonly used for?

Common uses include home improvements/renovations, debt consolidation, emergency funds, education expenses, and major purchases. Home improvements may add value to your home. Avoid using HELOCs for depreciating assets or everyday expenses.

What happens if I can't repay my HELOC?

Since your home secures the HELOC, failure to repay can result in foreclosure. Always borrow responsibly and ensure you can afford payments even if rates increase. Consider the risks before using home equity for non-essential purposes.