A HELOC (Home Equity Line of Credit) is a revolving credit line secured by your home's equity. It works like a credit card where you can borrow up to a set limit, repay, and borrow again during the draw period, typically 5-10 years.

How much can I borrow with a HELOC?

Most lenders allow you to borrow up to 80-85% of your home's value minus your mortgage balance. For example, if your home is worth $400,000 and you owe $200,000, you may qualify for a HELOC up to $120,000-$140,000.

What is the difference between draw period and repayment period?

During the draw period (usually 5-10 years), you can borrow from your credit line and typically make interest-only payments. During the repayment period (10-20 years), you can no longer borrow and must repay principal plus interest.

Are HELOC interest rates fixed or variable?

Most HELOCs have variable interest rates tied to the prime rate, meaning your rate and payment can change monthly. Some lenders offer fixed-rate options for portions of your balance for more predictable payments.

HELOC Calculator

Calculate your Home Equity Line of Credit available amount, monthly payments, and total costs.

Home Equity Line of Credit Calculator

Enter your home and loan details to see your available credit line

Property Details

Home Value ($) Current market value

Mortgage Balance ($) Remaining mortgage amount

Max LTV Ratio (%) Most lenders allow 80-85%

Amount to Borrow ($) Planned draw amount

HELOC Terms

Interest Rate (%) Variable rate (Prime + margin)

Draw Period (Years) Interest-only period

Repayment Period (Years) Principal + interest period

Payment Type During draw period

HELOC Summary

Monthly Payment

Interest only

Available Credit

Maximum HELOC

Total Interest

Over loan life

Home Equity

0% of home value

Home Equity Breakdown

Available Equity (0%)

Mortgage (0%)

HELOC Details

Home Value $0

Mortgage Balance -$0

Total Equity $0

                    Max HELOC (at LTV)
                    $0
                

Amount to Borrow $0

                    Remaining Available
                    $0
                

Payment Comparison

Phase	Duration	Payment Type	Monthly	Total Paid

Payment Schedule (First 24 Months)

Month	Phase	Payment	Principal	Interest	Balance

HELOC Calculation

Max HELOC = (Home Value × LTV%) - Mortgage Balance

Understanding HELOCs

What is a HELOC?

A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home equity. Unlike a home equity loan that gives you a lump sum, a HELOC works like a credit card - you can borrow up to your limit, repay, and borrow again during the draw period.

Draw vs Repayment Period

Draw Period: 5-10 years, borrow as needed
Interest-only payments typically required
Repayment Period: 10-20 years
No new borrowing, principal + interest due
Payment shock possible when draw ends

HELOC vs Home Equity Loan

HELOC: Variable rate, flexible borrowing
HE Loan: Fixed rate, lump sum
HELOC better for ongoing expenses
HE Loan better for one-time costs
Both use your home as collateral

Best Uses for a HELOC

Home renovations and improvements
Debt consolidation (use carefully)
Emergency fund backup
Education expenses
Avoid using for depreciating assets

Home Equity Line of Credit Calculator

Property Details

HELOC Terms

HELOC Summary

Home Equity Breakdown

HELOC Details

Payment Comparison

Payment Schedule (First 24 Months)

HELOC Calculation

Understanding HELOCs

What is a HELOC?

Draw vs Repayment Period

HELOC vs Home Equity Loan

Best Uses for a HELOC

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