Home Equity Line of Credit Calculator

Use this home equity line of credit calculator to determine how big a line of credit you may qualify for. The line of credit is based on a percentage of the value of your home. The more your home is worth, the larger the line of credit. Of course, the final line of credit you receive will take into account any outstanding mortgages you might have. This includes first mortgages, second mortgages, and any other debt you have secured by your home.

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Definitions

Appraised value of your home
This is current appraised value of your home. If it has been a few years since you purchased your home, it may be worth quite a bit more than your original purchase price.

Mortgages you owe
This is the total of all outstanding mortgages on your home. This should include your first mortgage, second mortgages and any other debt that is secured by your home.

Loan to value ratio
The loan to value ratio is the percent of your home's appraised value that your lender will allow. For example, a 80% loan to value ratio would allow you to have $80,000 in debt secured by a home appraised at $100,000. Remember - the total debt allowed includes all outstanding mortgages plus your new line of credit.

Home Equity Line of Credit Calculator

If you are not sure about the home equity line of credit that you are eligible to receive, this home equity line of credit calculator can help you determine the same in a matter of a few seconds. There may be times when you need some money to finance the purchase of a new car, consolidation of credit card debt, home repairs and improvements, or other expenditures, such as the payment for tuition. You can use the equity of your home to borrow the money you need. The money thus borrowed will be a secured loan, where you will actually be putting your home as a security.

Determining the Size of the Home Equity

You can use the home equity line of credit calculator to find out the maximum amount of credit that you can qualify for. Your potential line of credit is computed by subtracting the balance due on your existing loans (such as second mortgages, first mortgage, or other debts) from the appraised value of your home. This way, there is a very simple formula on how it all works, the larger the appraised value of your home, the higher will be your home equity line of your credit and the higher will be amount you can borrow.

This home equity line of credit calculator also makes the comparison-shopping much easier for you. You can compare the different offers by putting in the numbers, such as the rate of interest charged, the period of loan, and the amount of loan. 

The home equity line of credit also behaves like a credit card, as it provides you a revolving credit line. The home equity line of credit calculator will help you decide whether you really need to use this credit line to borrow the additional amount of money you need for varied reasons. So, use this fast and easy calculator and take the right decision for a home equity loan.    

     


Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.