Home Equity Calculator
Calculate home equity, HELOC payments, and equity loan options with current home value and mortgage balance.
Home Equity Calculator
Calculate available equity in your home
HELOC Payment Calculator
Calculate monthly payments for home equity line of credit
Home Equity Options
Understanding different ways to access your home's equity
Home Equity Line of Credit (HELOC)
- • Revolving credit line like a credit card
- • Variable interest rate
- • Interest-only payments during draw period
- • Access funds as needed
Home Equity Loan
- • Fixed loan amount and rate
- • Predictable monthly payments
- • Immediate lump sum payout
- • Fixed repayment schedule
Cash-Out Refinance
- • Replace existing mortgage with larger loan
- • Potentially lower interest rate
- • Single monthly payment
- • Restart loan term
Reverse Mortgage (62+)
- • No monthly payments required
- • Stay in your home
- • Loan repaid when you move or pass away
- • Must meet age and occupancy requirements
How to Use the Home Equity Calculator
Step 1: Determine Your Home's Value
Get a recent appraisal, check comparable sales in your area, or use online valuation tools. Consider getting a professional appraisal for the most accurate value.
Step 2: Find Your Mortgage Balance
Check your latest mortgage statement or contact your lender for the current payoff amount. This is the amount you still owe on your home.
Step 3: Calculate Available Equity
Your equity equals home value minus mortgage balance. Lenders typically allow borrowing up to 80-85% of home value minus existing mortgage balance.
Important Considerations
- • Home equity loans and HELOCs use your home as collateral
- • Interest may be tax-deductible if used for home improvements
- • Consider closing costs and fees when evaluating options
- • Market conditions can affect your home's value
Frequently Asked Questions
How much equity can I borrow against?
Most lenders allow you to borrow up to 80-85% of your home's value minus existing mortgage balance. Some lenders may go up to 90%, but this typically requires excellent credit and higher fees.
What's the difference between a HELOC and home equity loan?
A HELOC is a revolving line of credit with variable rates, while a home equity loan provides a fixed amount with a fixed rate. HELOCs offer flexibility, while home equity loans provide payment predictability.
Are home equity loan payments tax deductible?
Interest may be deductible if the funds are used for home improvements that increase the property's value. Consult a tax professional for specific guidance based on your situation.
What happens if I can't make payments?
Since your home serves as collateral, failure to make payments could result in foreclosure. Contact your lender immediately if you're having trouble making payments to explore options.