Home Equity Loan Calculator

Enter your home value, mortgage balance, and the loan you want. See your available equity under the 80% lending cap and the payment on a fixed home equity loan.

Monthly payment
Maximum you can likely borrow (80% CLTV)
Your equity today
Combined loan-to-value after borrowing
Total interest

How much equity can you actually borrow?

Max loan ≈ Home value × 80% − Mortgage balance

Lenders cap combined loan-to-value (your mortgage + the new loan) around 80–85%. A $420,000 home with $250,000 owed has $170,000 of equity, but only about $86,000 is borrowable at the 80% cap. Borrowing $60,000 puts CLTV at 73.8% — approvable at most lenders with adequate income and credit.

Fixed and simple — the appeal vs the HELOC

A home equity loan is a lump sum at a fixed rate with level payments from day one — no draw-period games, no floating rate. The cost of that certainty: fixed rates run above HELOC intro rates, and you pay interest on the full amount immediately even if the project spends it gradually. One-time known costs (a roof, consolidation of a fixed debt amount) fit the loan; open-ended projects fit the HELOC.

The unchanged fine print: your house secures it. Consolidating credit cards onto the house turns missable unsecured debt into foreclosure-grade debt — only worth it with the spending problem genuinely fixed.

Frequently asked questions

How much home equity can I borrow?

Typically up to 80–85% of home value minus your mortgage balance. $420,000 home, $250,000 owed → about $86,000 borrowable at the 80% cap.

What is CLTV?

Combined loan-to-value: (mortgage + home equity borrowing) ÷ home value. Lenders usually cap it at 80–85%; lower CLTV gets better rates.

Home equity loan or HELOC?

Loan: fixed lump sum, fixed rate — for known one-time costs. HELOC: flexible draw, variable rate, interest-only start — for phased or uncertain costs. The loan is the predictable one.

Is it smart to consolidate cards with home equity?

The rate math is compelling (9% vs 24%) but it secures previously unsecured debt with your house and takes 5–15 years. Safe only when paired with genuinely changed spending — otherwise the cards refill and the house carries both.

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Last updated: 2026-07-08