HELOC Calculator
Leverage your home’s equity with a flexible line of credit. Determine how much you can borrow for home improvements, education, or emergency expenses while maintaining financial flexibility.
How This Calculator Works
Our mortgage paymant is designed to provide you with accurate and quick estimates, helping you make informed financial decisions. Here’s how it works:Input Your Details:
Enter the required information, such as loan amount, interest rate, and loan term, into the calculator fields
Instant Calculation:
The calculator processes your data in real-time, using advanced algorithms to provide precise results.
View Your Results:
Instantly see your estimated monthly payments, total interest, and repayment schedule.
Adjust and Compare:
Modify the inputs to explore different scenarios and find the loan option that works best for you.
Got Questions?
What is a HELOC and how does it work?
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home. Unlike a standard loan, it works similarly to a credit card: you are approved for a specific limit, and you can borrow, repay, and borrow again as needed during a set period known as the “draw period”.
How much can I borrow with a HELOC?
Most lenders allow you to borrow up to 85% of your home’s appraised value, minus what you still owe on your first mortgage. This is often referred to as the Combined Loan-to-Value (CLTV) ratio.
What is the difference between the draw period and the repayment period?
The draw period (typically 10 years) is when you can access your funds and usually make interest-only payments. The repayment period (typically 20 years) follows, during which you can no longer withdraw money and must pay back both the principal and interest.
Is the interest on a HELOC tax-deductible?
According to current IRS guidelines, interest paid on a HELOC is generally only tax-deductible if the funds are used to “buy, build, or substantially improve” the home that secures the loan. You should consult a tax professional for your specific situation.
Are HELOC interest rates fixed or variable?
Most HELOCs come with variable interest rates, meaning your monthly payments can change based on market fluctuations. However, some lenders offer “fixed-rate partitions” that allow you to lock in a portion of your balance at a set interest rate.
