# HELOC and home equity calculator

> Home equity you can borrow at your lender's CLTV limit, and HELOC payments in the interest-only draw period and the repayment period, or a fixed home equity loan.

Versión interactiva: https://www.calcopenly.com/es/finance/home-equity-loan-calculator
Tema: Calculadoras financieras

Lenders cap what you can borrow against a home at a percentage of its value, the combined loan-to-value (CLTV) limit, minus what you still owe on the mortgage. A home equity line of credit (HELOC) then runs in two phases: in the draw period you pay only interest on what you have borrowed, and in the repayment period the balance is paid off in equal monthly payments. A home equity loan is repaid in equal payments from the start.

With the defaults, a 500,000 home with 300,000 owed and an 85% limit supports up to 125,000. Drawing 50,000 at 8.5% costs 354.17 a month through the 10-year draw period, then 433.91 a month for the 20 years after it.

HELOC rates are typically variable (Federal Reserve); set a different rate for the repayment period under More options to test a rise. The calculator assumes the full amount is drawn on day one and charges the annual rate ÷ 12 each month.

## Datos

- **Borrow with** (opciones: HELOC (line of credit), Home equity loan)
- **Home value**: The appraised value the lender will use.
- **Mortgage balance owed**
- **Lender's maximum combined LTV**: Mortgage plus the new loan as a share of the home's value. Lenders set their own limit; ask yours.
- **Amount to borrow**
- **Interest rate (per year)**
- **Draw period**
- **Repayment period**
- **Loan term**
- **Rate in the repayment period**: HELOC rates are typically variable; enter a higher rate to see the payment if rates rise.
- **Closing costs**
- **Annual fee**: Charged each year of the draw period.

## Resultados

- Borrowing limit — resultado principal
- Home equity
- Equity share of the value
- Mortgage loan-to-value now
- Combined LTV after borrowing
- Payment in the draw period (interest only)
- Payment in the repayment period
- Increase when repayment starts
- Monthly payment
- Total interest
- Interest and fees

## Fórmula

$$
\text{limit} = V\times \text{CLTV} - B,\qquad P_{\text{draw}} = A\,\frac{r}{12},\qquad P_{\text{repay}} = \frac{A\,i\,(1+i)^{m}}{(1+i)^{m}-1}
$$

## Ejemplos resueltos

### Federal Reserve credit-limit example

- Borrow with: HELOC (line of credit)
- Home value: 100,000
- Mortgage balance owed: 40,000
- Lender's maximum combined LTV: 75%
- Amount to borrow: 10,000
- Interest rate (per year): 10%
- Draw period: 10 years
- Repayment period: 20 years
- **Borrowing limit: 35,000.00**
- **Home equity: 60,000.00**
- **Payment in the draw period (interest only): 83.00**
- Fuente de comprobación: Federal Reserve Board, What you should know about home equity lines of credit: 100,000 × 75% − 40,000 = 35,000; 10,000 interest-only at 10% ≈ 83 a month

### Federal Reserve example after the rate rises to 15%

- Borrow with: HELOC (line of credit)
- Home value: 100,000
- Mortgage balance owed: 40,000
- Lender's maximum combined LTV: 75%
- Amount to borrow: 10,000
- Interest rate (per year): 15%
- Draw period: 10 years
- Repayment period: 20 years
- **Payment in the draw period (interest only): 125.00**
- Fuente de comprobación: Federal Reserve Board HELOC booklet: the same 10,000 interest-only at 15% costs 125 a month

### Default HELOC: 50,000 at 8.5%, 10-year draw, 20-year repayment

- Borrow with: HELOC (line of credit)
- Home value: 500,000
- Mortgage balance owed: 300,000
- Lender's maximum combined LTV: 85%
- Amount to borrow: 50,000
- Interest rate (per year): 8.5%
- Draw period: 10 years
- Repayment period: 20 years
- **Borrowing limit: 125,000.00**
- **Combined LTV after borrowing: 70.00%**
- **Payment in the draw period (interest only): 354.17**
- **Payment in the repayment period: 433.91**
- **Increase when repayment starts: 79.74**
- **Total interest: 96,638.79**
- Fuente de comprobación: Python decimal: 50,000 × 0.085/12; annuity over 240 months at 0.085/12; total interest = 120 × 354.1667 + 240 × 433.9116 − 50,000

### 15-year home equity loan at 8.5%

- Borrow with: Home equity loan
- Home value: 500,000
- Mortgage balance owed: 300,000
- Lender's maximum combined LTV: 85%
- Amount to borrow: 50,000
- Interest rate (per year): 8.5%
- Loan term: 15 years
- **Monthly payment: 492.37**
- **Total interest: 38,626.56**
- **Payment in the draw period (interest only): no aplicable**
- Fuente de comprobación: Python decimal annuity: 50,000 at 0.085/12 over 180 months = 492.3698; interest = 180 × payment − 50,000

### Rate rises in the repayment period

- Borrow with: HELOC (line of credit)
- Home value: 400,000
- Mortgage balance owed: 200,000
- Lender's maximum combined LTV: 80%
- Amount to borrow: 100,000
- Interest rate (per year): 7.5%
- Draw period: 10 years
- Repayment period: 15 years
- Rate in the repayment period: 9.5%
- **Borrowing limit: 120,000.00**
- **Payment in the draw period (interest only): 625.00**
- **Payment in the repayment period: 1,044.22**
- **Total interest: 162,960.44**
- Fuente de comprobación: Python decimal: interest-only 100,000 × 0.075/12 for 120 months, then an annuity at 0.095/12 over 180 months

### Mortgage already above the CLTV limit

- Borrow with: HELOC (line of credit)
- Home value: 500,000
- Mortgage balance owed: 450,000
- Lender's maximum combined LTV: 85%
- Amount to borrow: 20,000
- Interest rate (per year): 8.5%
- Draw period: 10 years
- Repayment period: 20 years
- **Borrowing limit: 0.00**
- **Home equity: 50,000.00**
- **Combined LTV after borrowing: 94.00%**
- Fuente de comprobación: Hand calculation: 85% × 500,000 = 425,000 is less than the 450,000 owed, so there is no room to borrow

## Preguntas

### How much can I borrow against my home?

Multiply the home's appraised value by the lender's maximum combined loan-to-value and subtract the mortgage balance. The Federal Reserve's example: 75% of a 100,000 home is 75,000, less 40,000 owed, leaves a 35,000 line. At an 85% limit, a 500,000 home with 300,000 owed supports 125,000. The lender also checks your income, debts and credit before setting the final limit.

### How is a HELOC payment calculated?

During the draw period an interest-only payment is the balance times the annual rate ÷ 12. The Federal Reserve's example: 10,000 at 10% costs 83 a month, rising to 125 if the rate reaches 15%. In the repayment period the balance is amortized like a mortgage: 50,000 at 8.5% over 20 years costs 433.91 a month.

### What happens when the HELOC draw period ends?

You stop borrowing and start repaying principal, so the payment rises even if the rate does not. On 50,000 at 8.5%, the interest-only 354.17 becomes 433.91 over a 20-year repayment period, 22.5% more. Some plans instead require the whole balance at once as a balloon payment, which you would have to refinance or pay (Federal Reserve).

### Is a HELOC or a home equity loan cheaper?

At the same rate, the loan that repays principal sooner costs less interest. Borrowing 50,000 at 8.5%, a 15-year home equity loan costs 492.37 a month and 38,626.56 in interest; a HELOC with 10 interest-only years and 20 repayment years costs 96,638.79. The HELOC's advantage is flexibility: you pay interest only on what you draw.

### ¿Qué precisión tiene «HELOC and home equity calculator»?

La precisión depende de tus datos y de los supuestos del método. El cálculo decimal usa 50 cifras significativas, pero las estimaciones, los métodos numéricos y los datos de origen pueden ser menos precisos; el redondeo mostrado no elimina esos límites. Ejemplos resueltos comprobados con fuentes independientes: 6. Por ejemplo, «Federal Reserve credit-limit example» se comprueba con Federal Reserve Board, What you should know about home equity lines of credit: 100,000 × 75% − 40,000 = 35,000; 10,000 interest-only at 10% ≈ 83 a month.

### ¿De dónde procede el método?

Federal Reserve Board — What you should know about home equity lines of credit; Consumer Financial Protection Bureau — What is a home equity line of credit (HELOC)?; Microsoft Excel PMT function.

## Fuentes

- [Federal Reserve Board — What you should know about home equity lines of credit](https://www.govinfo.gov/content/pkg/GOVPUB-FR-PURL-gpo25639/pdf/GOVPUB-FR-PURL-gpo25639.pdf)
- [Consumer Financial Protection Bureau — What is a home equity line of credit (HELOC)?](https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-line-of-credit-heloc-en-107/)
- [Microsoft Excel PMT function](https://support.microsoft.com/office/pmt-function-0214da64-9a63-4996-bc20-214433fa6441)

_Solo para planificar. Prestamistas, autoridades fiscales y mercados aplican sus propios redondeos, comisiones y reglas; confirma las cifras con ellos antes de comprometerte._