HELOC Calculator
Calculate your home equity line of credit payment and available borrowing capacity.
Frequently Asked Questions
What is a HELOC?
A HELOC (Home Equity Line of Credit) is a revolving line of credit secured by your home. You can draw up to a set limit and only pay interest on what you borrow. HELOCs often have variable interest rates.
How is available equity calculated?
Available equity is typically 80% of your home's value minus your mortgage balance. Most lenders don't let you borrow against more than 80% of equity as a safety margin. The actual percentage varies by lender.
What's the difference between a HELOC and a home equity loan?
A HELOC is a revolving credit line (like a credit card) with variable rates. A home equity loan is a fixed-rate second mortgage. HELOCs offer flexibility; home equity loans offer rate certainty.
Can HELOC rates increase?
Yes, most HELOCs have variable interest rates tied to an index like the prime rate. When rates rise, your payment increases. Some lenders offer fixed-rate options or interest-only periods.
What can I use a HELOC for?
HELOCs can be used for home improvements, debt consolidation, education, medical expenses, or other needs. Interest may be tax-deductible if used for home improvements (consult a tax advisor).