HELOC Calculator
A HELOC calculator helps homeowners evaluate home equity line of credit options and calculate payments. Calculate HELOC draw periods, repayment schedules, and interest costs for home equity line of credit financing and flexible borrowing decisions.
HELOC Calculator
Use this calculator for HELOC, home equity line of credit, and flexible home equity borrowing.
Results:
| Draw Period Payment | $425.00 |
| Repayment Period Payment | $515.00 |
| Payment Increase | $90.00 |
| Total Interest (Draw Period) | $51,000.00 |
| Total Interest (Repayment) | $63,600.00 |
| Total Interest Cost | $114,600.00 |
| Available Credit | $40,000.00 |
| Combined LTV | 84.0% |
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| View Draw Schedule | |
Home Equity Calculator
Calculate available home equity and borrowing capacity for home equity financing.
Results:
| Total Home Equity | $300,000.00 |
| Equity Percentage | 54.5% |
| Maximum Borrowing | $190,000.00 |
| Available to Borrow | $190,000.00 |
| Equity Gain | $225,000.00 |
| Loan-to-Value Ratio | 45.5% |
| Combined LTV (Max) | 80.0% |
| Net Borrowing Capacity | $187,000.00 |
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| View Equity Analysis | |
Cash-Out Refinance Calculator
Compare cash-out refinance with HELOC and home equity loan options.
Results:
| Cash-Out Payment | $1,890.00 |
| HELOC Payment | $1,220.00 |
| Current + HELOC | $1,770.00 |
| Monthly Savings (HELOC) | $120.00 |
| Break-Even Point | 5.6 years |
| Total Interest (5 years) | $45,200.00 |
| HELOC Interest (5 years) | $28,800.00 |
| Recommended Option | HELOC |
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| View Refinance Comparison | |
Understanding HELOC
A Home Equity Line of Credit (HELOC) provides flexible access to home equity through a revolving credit line. Understanding draw periods, repayment phases, and rate structures helps make informed home equity borrowing decisions.
| HELOC Feature | Draw Period | Repayment Period | Typical Terms | Benefits |
|---|---|---|---|---|
| Draw Period | Interest-only payments | Principal + interest | 10 years | Lower payments, flexibility |
| Repayment Period | Access to funds | No new draws | 20 years | Fixed repayment schedule |
| Variable Rate | Rate adjusts | Rate adjusts | Prime + margin | May decrease with rates |
| Credit Limit | Up to 80-85% LTV | Same limit | Based on equity | Large borrowing capacity |
Home Equity Options Comparison
Different home equity financing options offer varying benefits and structures for accessing home equity.
Financing Options
| Option | Structure | Rate Type | Access | Best For |
|---|---|---|---|---|
| HELOC | Revolving credit line | Variable | As needed | Ongoing projects, flexibility |
| Home Equity Loan | Fixed lump sum | Fixed | One-time | Large single expense |
| Cash-Out Refinance | New first mortgage | Fixed/Variable | One-time | Lower rates, debt consolidation |
| Personal Loan | Unsecured loan | Fixed | One-time | No home as collateral |
HELOC Rate Factors
HELOC rates are influenced by multiple factors including credit profile, loan-to-value ratio, and market conditions.
Rate Determinants
| Factor | Impact on Rate | Typical Range | Improvement Strategy |
|---|---|---|---|
| Credit Score | Higher score = lower rate | 0.5-2.0% difference | Improve credit before applying |
| Loan-to-Value | Lower LTV = lower rate | 0.25-1.0% difference | Pay down mortgage or wait for appreciation |
| Property Type | Primary residence best | 0.25-0.75% difference | Consider property classification |
| Relationship | Existing customer discounts | 0.1-0.5% discount | Shop with current bank first |
HELOC Benefits and Considerations
HELOCs offer unique advantages and considerations for accessing home equity financing.
Benefits and Considerations
- Flexibility: Draw funds as needed during draw period, pay interest only on amount used
- Lower Initial Costs: Typically lower closing costs than cash-out refinancing
- Tax Benefits: Interest may be deductible for home improvements (consult tax advisor)
- Rate Risk: Variable rates can increase, affecting payment amounts
- Payment Shock: Payments increase significantly when repayment period begins
- Home as Collateral: Risk of foreclosure if unable to make payments