Online Home Equity Line of Credit Calculator
Use HELOC monthly payment calculator to compare different scenarios, calculate your estimated loan amount, and see your repayment schedule with just a few clicks.
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Enter your home value, outstanding mortgage balance, and other requested details to estimate your available HELOC amount and potential monthly payments.
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What is a Home Equity Line of Credit?
A Home Equity Line of Credit (HELOC) is a revolving credit line that allows homeowners to borrow on the equity they have in their home. You can access your available credit limit when needed for renovations, school fees, debt consolidation, medical bills, emergencies, or any unexpected expense, and you will only pay interest on what you use.
A HELOC will usually have a variable interest rate, and this could be less than most credit cards or personal loans. Some lenders may offer fixed rates, allowing you to lock in your interest rate and have predictability for your monthly payment.
How Does a Home Equity Line of Credit Work?
A HELOC has two phases. In your draw period, lasting usually five to ten years, you are able to access funds up to your approved amount as you need, while generally only making interest payments. After the draw period ends, your repayment phase begins, which usually averages ten to twenty years, when you will start principal and interest payments. You can use this HELOC loan calculator to estimate what your monthly payment will be.
- Withdraw funds when you like in the draw phase.
- Make interest-only payments at first, for more flexibility.
- Repay principal and interest in the repayment phase.
- Handy if you pay if back in the draw phase to use the line of credit again.
- Most HELOCs are variable rate, which means your payments could go up or down.
This means you should weigh out options by reviewing products available as variable and fixed to find which works for you.
How to Calculate HELOC Payment?
If you don't know how to calculate HELOC for your monthly payment. Let's figure it out here. They are usually two common monthly payment formulas you can use for a HELOC:
- Interest-only (typical during draw period):Payment = P * rP = outstanding balance, r = monthly interest rate (annual APR ÷ 12).
- Fully amortizing (principal and interest over N months):Payment = rP / (1 - (1 + r)^-n)P = loan principal, r = monthly rate, n = number of months remaining.
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Key Benefits of Home Equity Line of Credit
A HELOC offers several unique advantages for homeowners looking to tap into their property’s value:
- Flexible access to funds as your needs change
- Interest-only payments during the draw period help manage cash flow
- Typically lower interest rates compared to most credit cards
- Options for fixed rates may be available from some lenders
- Funds can be used for any purpose: home improvements, tuition, debt consolidation, emergencies, medical bills, or large purchases
- Pay interest only on the amount you actually draw, not your full credit line
- Use our calculator to see exactly how much you can borrow and what your monthly payment will be.
Pros and Cons of Home Equity Line of Credit
Is a home equity line of credit a good idea? Here are the advantages and disadvantages of HELOC that you might look up before you apply for it.
Props
- Flexible borrowing and re-borrowing.
- Lower interest than many unsecured options.
- May be cheaper if used short-term.
Cons
- Payments can rise if rates climb, and the repayment shock after draw period can be large.
- The primary risk is that default can lead to foreclosure.
- Appraisal, closing, and other fees may apply.
- Using HELOC to fund consumption can erode home equity.
Home Equity Loan VS Line of Credit
What is the difference between Home Equity Loan and Line of Credit? They are both second mortgages, but they are two types of loans that use the value of your house as collateral. Here's the comparison.
| Home Equity Loan | HELOC | |
|---|---|---|
| What you get | One lump-sum payment | A revolving credit line you draw from |
| Interest rate | Usually fixed | Usually variable (some fixed options) |
| Payments | Principal and interest (fixed monthly) | Often interest-only during draw period then principal and interest later |
| Flexibility | Low — one-time funds | High — borrow, repay, borrow again up to limit |
| Best for | One-time big expenses | Ongoing or uncertain expenses |
| Main advantage | Predictable payments | Only pay interest on what you use |
| Main risk | Not reusable without new loan | Rate changes and payment shock when repayment starts |
How to Apply for a HELOC?
Applying for a HELOC is straightforward and can usually be started online:
- Evaluate your equity: Make sure you have sufficient equity in your home—most lenders allow you to borrow up to 80–85% of your home’s value, minus your current mortgage balance. Use our calculator to estimate your available loan amount.
- Compare lenders: Research rates, terms, repayment schedules, and fees across different providers to find the best option.
- Gather documentation: Be prepared to provide proof of income, employment verification, property details, recent bank account statements, and your current mortgage statement.
- Submit your application: Complete the lender's online or in-person application form.
- Appraisal and approval: The lender will typically arrange a home appraisal and review your information.
- Close and access funds: Once approved, sign your loan documents and begin accessing your HELOC.
Most HELOC applications can be started and completed online, making the process quick and convenient. Your personal and account information will be kept private and secure during the entire process.
FAQs About HELOC Repayment Calculator
Q1. How to get a home equity line of credit?
Q2. What are home equity line of credit requirements?
Q3. Can you refinance a home equity line of credit?
Q4. Is home equity line of credit interest tax deductible?
Q5. Is a home equity line of credit a second mortgage?
Q6. Where to get a home equity line of credit?
Q7. How to qualify for a home equity line of credit?
Q8. What is the average interest rate on a HELOC?
Ready to Calculate Monthly Payment on HELOC?
Try our HELOC loan calculator online to calculate your options, compare payment schedules, and find the best rate for your needs. Apply online today or contact us for more information.
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