Home Equity Loan Calculator

Calculate monthly payments and borrowing capacity for fixed-rate home equity loans based on home value and outstanding mortgage debt.

Calculator Inputs

$
Market appraisal.
$
Existing mortgage debt.
$
Cash needed.
%
Fixed second mortgage APR.
Repayment duration.

Calculated Results

Maximum Home Equity Borrowing Limit
$90,000.00 (at 85% Max LTV)
Estimated Monthly Payment $812.50 / mo
Current Combined Loan-to-Value (CLTV) 62.50%
Total Appraised Equity $150,000.00
Values calculate live as you adjust inputs.

About Home Equity Loan Calculator

Calculates borrowing limits and fixed monthly installments for closed-end second mortgages secured by accrued residential equity.

What is Home Equity Loan Calculator?

Calculates borrowing limits and fixed monthly installments for closed-end second mortgages secured by accrued residential equity.

How to Use This Calculator

  1. Enter current property market value.
  2. Enter existing first mortgage balance.
  3. Enter desired second mortgage amount and interest rate.
  4. Review maximum borrowing capacity under 85% CLTV and monthly payment.

The Mathematical Formula & Variables

Max Loan = (Home Value * 85%) - First Mortgage Balance

Step-by-Step Worked Example

Scenario: $400k home value, $250k mortgage balance, 85% max LTV.

  1. 85% of $400,000 = $340,000.
  2. Max equity borrowing = $340,000 - $250,000 = $90,000.
  3. Monthly payment on $75,000 at 8% for 15 years = $716.74.

Result: $90,000 borrowing limit, $716.74/mo

Frequently Asked Questions

What is the maximum CLTV lenders allow?

Most banks and credit unions cap Combined Loan-to-Value (CLTV) at 80% to 85% of appraised market value.