Home Equity Loan Calculator
How much you can borrow, and the monthly payment
- Most you could borrowat 85% combined loan-to-value
- $175,000
- Your equity50% of the home's value
- $250,000
- Combined loan-to-value after
- 60.0%
- Total interestover the full term
- $38,627
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Estimate, not a loan offer. Lenders set their own loan-to-value limits, rates and fees. We may earn a commission when you click. It does not change your estimate. How we calculate · How we make money
Home equity rates vary by lender
The rate above is an example. Compare offers to see the real rate, fees and amount you can borrow.
Free to compare. No obligation.
How much home equity can you borrow?
Your equity is your home's value minus what you owe. Lenders usually won't lend against all of it. They cap your combined loan-to-value (CLTV), the total of every loan on the home divided by its value, often at 80% to 90%. So the most you can borrow is the home's value times that limit, minus your current mortgage balance.
In the example, a $500,000 home with a $250,000 mortgage has $250,000 of equity. At an 85% CLTV limit, the most you could borrow is $175,000. Borrowing $50,000 at 8.5% for 15 years costs about $492 a month and about $38,600 in interest over the life of the loan.
Home equity loan vs. HELOC
- Home equity loan: one lump sum, a fixed rate and a fixed payment from the first month. Good for a single known cost, like a renovation or paying off high-rate debt.
- HELOC: a credit line you draw as needed, usually with a variable rate and interest-only payments at first. See the HELOC calculator.
- Cash-out refinance: replaces your whole mortgage with a bigger one. It can make sense when the new rate is close to or below your current rate. See the cash-out refinance calculator.
Before you borrow
A home equity loan is secured by your home, so missing payments puts the home at risk. Compare the rate with other options, check closing costs, and borrow only what you need. Interest may be tax-deductible only when the money is used to buy, build or substantially improve the home; check with a tax professional.
Frequently asked questions
What is a home equity loan?
A second loan secured by your home that pays you a lump sum, usually with a fixed rate and a fixed monthly payment over 5 to 30 years. You keep your existing mortgage and make both payments.
How much can I borrow with a home equity loan?
Usually up to 80% to 90% of your home's value minus your current mortgage balance. With a $500,000 home, a $250,000 balance and an 85% limit, that's up to $175,000. Your credit and income also matter.
Are home equity loans a good idea?
They can be for a planned cost like a renovation or replacing high-rate debt, since rates are usually lower than credit cards or personal loans. The risk is that your home secures the loan, so missing payments can lead to foreclosure.
Home equity loan or HELOC?
A home equity loan gives you a lump sum at a fixed rate. A HELOC is a credit line you draw as needed, usually at a variable rate with interest-only payments at first. Choose the loan for one known cost, and the line for costs spread over time. Compare them with the HELOC calculator.