Home Equity Loan Calculator
Equity & Loan Details
Home Equity Results
| Monthly Payment | — |
|---|---|
| Total of 180 loan payments | — |
| Total Interest | — |
Visual Breakdown
Enter values and press Calculate to see the loan breakdown pie chart and balance path line chart.
How Home Equity Loans Work
A **home equity loan** (also known as a second mortgage) allows you to borrow against the equity you have built in your home. Your equity is the difference between your home's current appraised market value and your outstanding mortgage balances.
The Home Equity Formulas
Lenders restrict borrowing to a maximum Loan-to-Value (LTV) ratio:
- **Total Borrowing Limit:** ***Home Value × LTV Limit***
- **Max Home Equity Loan:** ***Total Borrowing Limit - Current Mortgage Balance***
If your outstanding mortgage balance exceeds the borrowing limit (e.g. if you have high LTV or if the home has declined in value), you will have zero home equity borrowing capacity.
Disclaimer. This calculator is for informational purposes only. Appraised home values fluctuate, and home equity loans are secured by your property; failure to make payments can result in foreclosure.