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Home Equity Loan

Calculate your available home equity, monthly payments, and borrowing limits with fixed-rate financing.

Currency
Property Details

Market value or recent appraisal

Remaining balance on 1st mortgage

Total Equity$260,000.00
Loan Details
5 years30 years
Lender Requirements

% of loan amount

Tax Calculation

For deduction calculation (if used for home improvement)

Equity Position
1st Mortgage48.0%
HEL12.0%
Remaining40.0%
Combined LTV60.0%
0%80% (Standard Max)100%

Loan Approved

CLTV of 60.0% is within 80% limit

Monthly Payment

$590.84

Fixed payment for 15 years

Total Equity

$260,000.00

Current equity
Max Borrowable

$160,000.00

at 80% CLTV
Total Interest

$46,351.87

over 15 years
Remaining Equity

$200,000.00

after loan
Loan Summary
Loan Amount$60,000.00
Closing Costs$1,200.00
Net Proceeds$58,800.00
Effective APR8.84%
Total Repayment$106,351.87
Potential Tax Benefit

If used for home improvement, interest may be tax deductible.

Annual Savings

$679.83

Effective Payment

$534.19

Borrowing Limits by CLTV
At 80% CLTV (Standard)$160,000.00
At 85% CLTV (Extended)$185,000.00

Understanding Home Equity Loans

HEL vs HELOC

Home Equity Loan (HEL): Lump sum, fixed rate, fixed payments. Best for one-time expenses like renovations.

HELOC: Revolving credit, variable rate, flexible draws. Best for ongoing expenses or emergencies.

CLTV Requirements

  • - Most lenders: Max 80% CLTV
  • - Some lenders: Up to 85% CLTV
  • - Credit unions: Sometimes 90% CLTV
  • - Higher CLTV = higher rates

Tax Deductibility

Interest on home equity debt up to $750,000 total mortgage debt may be deductible if used to buy, build, or substantially improve your home. Consult a tax professional.

When to Use HEL

  • - Home renovations
  • - Debt consolidation
  • - Major purchases
  • - Education expenses