Home Equity Loan and HELOC Calculator
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Home equity = Current home value – Outstanding mortgage balance
Most lenders let you borrow only a portion of your equity, typically up to about 85% of your home’s value. This calculator estimates how much you may qualify to borrow based on those limits.
- Both home equity loans and HELOCs let you borrow against your home’s equity, but home equity loans are paid out in a lump sum, while HELOCs are a revolving credit line you can use, pay back and reuse.
- A home equity loan may be a better fit if you know exactly how much money you need.
- A HELOC may work better if you need ongoing access to funds or have an uncertain budget.
- LendingTree lets you compare offers from multiple lenders at once, so you can skip applying with each bank separately and find your best rate faster.
Competitive home equity rates offered on LendingTree this month
Once you have an idea of how much you can borrow, here’s what current home equity rates and loan options look like.
| LOAN AMOUNT | APR AS LOW AS
Rates are calculated based on conditional offers for both home equity loans and home equity lines of credit with 30-year repayment periods presented to consumers nationwide by LendingTree’s network partners in the past 30 days for each loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
|
|---|---|
| $25,000 | 7.91% |
| $50,000 | 6.49% |
| $100,000 | 6.49% |
| $150,000 | 7.00% |
Home equity loan vs. HELOC: What’s the difference?
| Home equity loan | HELOC | |
|---|---|---|
| Payout type | Lump sum | Revolving credit line |
| Rate type | Fixed | Variable |
| Interest-only payment option? | ||
| Common uses | College tuition Consolidating debt Starting a business | Home improvements Medical expenses Emergency funds |
Most lenders typically have the same three basic guidelines for their HELOC requirements and home equity loan requirements:
-
43% maximum debt-to-income (DTI) ratio
Your DTI ratio compares how much you owe each month to how much you earn. To calculate it, divide your monthly debt payments by your total monthly income before taxes. Most lenders prefer a DTI below 43%, but 35% or lower is considered ideal.
- 620 minimum credit score
-
85% maximum loan-to-value (LTV) ratio
An LTV ratio shows what percentage of your home’s value you’re borrowing. For example, if you’re buying a $200,000 house with a $160,000 mortgage, your LTV is 80%. Lenders use this number to decide how risky your loan is. Most lenders won’t let you borrow more than 85% of your home’s value, which means that the total balance of both your current mortgage and new home equity loan or HELOC can’t exceed 85% of your home’s value.
See LendingTree’s full guide on how a home equity loan works.
Average 30-year home equity monthly payments for LendingTree users
These are average monthly payments for home equity loans and HELOCs combined, based on a 30-year repayment term.
| Loan amount | Monthly payment
Average rates disclaimer: Rates are calculated based on conditional offers for both home equity loans and home equity lines of credit with 30-year repayment periods presented to consumers nationwide by LendingTree’s network partners in the past 30 days for each loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
|
|---|---|
| $25,000 | $243.58 |
| $50,000 | $347.28 |
| $100,000 | $662.98 |
| $150,000 | $1131.01 |
To explore average monthly payments for specific loan amounts and equity loan types, click through the sections below. The payment amounts given assume a 20-year loan repayment.
-
Monthly payment during draw period
: $343During the draw period you’ll often have the option to make low, interest-only payments. That means you only pay the interest charges each month without reducing the loan principal balance.
-
Monthly payment during repayment period
: $425During the repayment period you’ll pay the same amount each month, but each payment will go toward paying interest and reducing the principal balance.
- Total interest: Up to $52,022 (varies based on your credit usage)
- Closing costs: $1,000 to $2,500
-
Total of all payments
: $102,022The sum of all principal and interest payments.
If you borrow the full $50,000 from a HELOC at today’s rates, you’d pay about $343 per month with interest-only payments or $425 with principal-and-interest payments. However, you only pay interest on the amount you use, not the full amount of the credit line. So, for example, if you only spend $25,000, your payments would be half of those amounts.
You’d pay about $373 per month for a $50,000 home equity loan with a 20-year term at current market rates. Here’s the complete cost breakdown:
- Closing costs: $1,000 to $2,500
- Total interest: $39,539
-
Total of all payments
: $89,539The sum of all principal and interest payments.
-
Monthly payment during draw period
: $471During the draw period you’ll often have the option to make low, interest-only payments. That means you only pay the interest charges each month without reducing the loan principal balance.
-
Monthly payment during repayment period
: $606During the repayment period you’ll pay the same amount each month, but each payment will go toward paying interest and reducing the principal balance.
- Total interest: Up to $70,337 (varies based on your credit usage))
- Closing costs: $1,500 to $3,750
-
Total of all payments
: $The sum of all principal and interest payments.
145,337
If you borrow the full $75,000 from a HELOC at today’s rates, you’d pay about $471 per month with interest-only payments or $606 with principal-and-interest payments. However, you only pay interest on the amount you use, not the full amount of the credit line. So, for example, if you only spend $37,500, your payments would be half of those amounts.
You’d pay about $562 per month for a $75,000 home equity loan with a 20-year term at current market rates. Here’s the complete cost breakdown:
- Closing costs: $1,500 to $3,750
- Total interest: $59,840
-
Total of all payments
: $134,840The sum of all principal and interest payments.
-
Monthly payment during draw period
: $587During the draw period you’ll often have the option to make low, interest-only payments. That means you only pay the interest charges each month without reducing the loan principal balance.
-
Monthly payment during repayment period
: $778During the repayment period you’ll pay the same amount each month, but each payment will go toward paying interest and reducing the principal balance.
- Total interest: Up to $86,648 (varies based on your credit usage)
- Closing costs: $2,000 to $5,000
-
Total of all payments
: $186,648The sum of all principal and interest payments.
If you borrow the full $100,000 from a HELOC at today’s rates, you’d pay about $597 per month with interest-only payments or $778 with principal-and-interest payments. However, you only pay interest on the amount you use, not the full amount of the credit line. So, for example, if you only spend $50,000, your payments would be half of those amounts.
You’d pay about $753 per month for a $100,000 home equity loan with a 20-year term at current market rates. Here’s the complete cost breakdown:
- Closing costs: $2,000 to $5,000
- Total interest: $80,779
-
Total of all payments
: $180,779The sum of all principal and interest payments.
How to calculate your home equity loan or HELOC amount
Your home equity is simply the part of your home you actually own — what it’s worth today minus what you still owe. But lenders won’t let you borrow every dollar of that equity. They keep a cushion, and most cap your total borrowing at about 85% of your home’s value. That 85% figure is called your loan-to-value (LTV) ratio, and it just means “how much of your home’s value you’re borrowing against.”
Here’s the easy formula: Borrowing limit = (Current home value x 85%) – Current mortgage balance
Why the 85%? Think of it as the lender’s safety margin. Because they want to leave some equity untouched, your borrowable equity is smaller than your total home equity.
Let’s do it together, step by step:
Step 1 — Start with your home’s value. Say your home is worth $350,000.
Step 2 — Take 85% of it. $350,000 x 0.85 = $297,500. That’s the most a lender will usually let you owe in total.
Step 3 — Subtract what you still owe. If your mortgage balance is $200,000, then $297,500 – $200,000 = $97,500.
Step 4 — That’s your answer. You could borrow up to about $97,500.
If you prefer to estimate how much you may be able to borrow, follow these steps:
- Multiply your home’s value by 85% (0.85)
- Subtract the amount you have left to pay on your mortgage
- The result is your potential maximum home equity loan amount
You only need three pieces of information to find your estimate:
- Your home’s most recent appraised value (or estimated value). Use LendingTree’s home value estimator to get a ballpark value.
- Your outstanding mortgage balance. Grab your current mortgage statement to get this info.
- Your credit score range. If you don’t already know your credit score, you can get your free credit score by signing up for a LendingTree account.
How to apply for a HELOC or home equity loan on LendingTree
Before you start shopping for a home equity loan or HELOC, it helps to know how much equity you have in your home, since this determines your eligibility and borrowing limit. You’ll also want to decide whether a lump-sum home equity loan or a flexible credit line best fits your needs.
Here’s how to get started:
-
Prequalify
Fill out our online form and let LendingTree’s system match you with lenders based on your profile. -
Compare offers
You’ll receive loan offers from multiple lenders, usually within minutes. You’ll need proof of your income, employment, debt and assets. -
Complete a full application
Once you’ve compared offers and chosen a lender to move forward with, you’ll fill out that lender’s more detailed application. They’ll typically do a hard credit pull as part of evaluating your finances. -
Go through the closing process
Once you’re approved, you’ll get important documents: a closing disclosure comes with a home equity loan, while a HELOC borrower should receive a slightly different form known as a truth-in-lending disclosure.
Why you can trust LendingTree with your home equity loan or HELOC
Security
Instead of sharing information with multiple lenders, fill out one simple, secure form in five minutes or less.
Savings
We’ll match you with up to five lenders from our network of 300+ lenders who will call to compete for your business.
Support
We provide ongoing support with free credit monitoring, budgeting insights and personalized recommendations to help you save.
Frequently asked questions
It takes roughly two to four weeks to complete the home equity loan process.
If you meet the basic requirements, approval is usually straightforward and fast. You can often close on a home equity loan within a few weeks or a HELOC in as little as five days.
Home equity loans and HELOCs can be hard to get if you have a credit score below 620, carry a lot of debt or haven’t yet built up enough home equity. But it is possible to get a bad credit HELOC, a bad credit home equity loan, or a loan with less than 15% equity.
Online calculators can give you a rough estimate, but they aren’t highly accurate if they rely on guesses about your home’s value. For precise equity calculations, you’ll need a professional home appraisal or comparative market analysis from a real estate agent.
Yes, you’ll have negative home equity if you owe more on your mortgage than your home’s current market value. This situation, called being “underwater” or “upside-down,” typically occurs when property values decline significantly.