Calculator
HELOC Calculator
Work out how much credit your equity supports, what an interest-only draw costs each month, and how much the payment jumps when the repayment period starts.
How the available credit is calculated
Lenders cap your combined loan-to-value: your first mortgage plus the new line, as a share of the home’s value. Multiply value by that cap, subtract what you still owe, and the remainder is the most the line can be. It is always less than your equity, because the lender leaves a cushion.
The cap itself varies. Primary residences get the highest limits, second homes and investment properties get less, and a Texas homestead is capped at 80% of fair market value by the state constitution.
Why the payment jumps later
During the draw period most lines let you pay interest only. That keeps the payment low, and it also means the balance does not move. When the draw period ends, the line converts to principal and interest over the repayment term, and the payment on the same balance rises sharply. This calculator shows both numbers side by side, because the second one is the one that has to fit your budget.
On this HELOC the draw period runs 2 to 5 years rather than the traditional 10, so that reset arrives sooner. That is a feature if you are using the line for a defined job, and a problem if you were planning to carry the balance indefinitely.
Related
How the HELOC works · Debt consolidation · All calculators · HELOC vs. home equity loan
Want the real number? Start the HELOC application and connect your deposit accounts, or send me your scenario first and I will tell you whether a line, a fixed home equity loan or a cash-out refinance fits better.