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Calculate how much you can borrow with a Home Equity Line of Credit. See your available equity, potential credit limit, and estimated payments during draw and repayment periods.
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A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home equity. Unlike a traditional loan, you can borrow and repay repeatedly during the draw period (typically 10 years), only paying interest on what you use.
Most lenders allow you to borrow up to 80-85% of your home equity (home value minus mortgage balance). For example, if your home is worth $400,000 and you owe $250,000, you could access up to $70,000-$90,000.
A home equity loan gives you a lump sum with fixed payments. A HELOC works like a credit card - you draw funds as needed and only pay interest on what you borrow. HELOCs typically have variable rates, while home equity loans are usually fixed.
Common uses include home improvements, debt consolidation, education expenses, emergency funds, or major purchases. HELOC interest may be tax-deductible if used for home improvements (consult a tax advisor).
The draw period (typically 10 years) lets you borrow and make interest-only payments. The repayment period (typically 20 years) requires full principal and interest payments. Some HELOCs allow renewal of the draw period.