{"id":67375,"date":"2026-10-21T10:06:41","date_gmt":"2026-10-21T07:06:41","guid":{"rendered":"https:\/\/wpcalc.com\/en\/?p=67375"},"modified":"2026-10-21T10:06:41","modified_gmt":"2026-10-21T07:06:41","slug":"home-equity-calculator","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/home-equity-calculator\/","title":{"rendered":"Home Equity Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 id=\"calculator-title\" class=\"text-lg font-display font-bold\">Calculate Your Home Equity and How Much You Can Borrow<\/h2><\/div><div class=\"calcdash-favorite group\">\n  <button type=\"button\" class=\"favorite\" id=\"favorite\" data-favorite-id=\"67375\" data-favorite-title=\"Home Equity\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/home-equity-calculator\/\" data-favorite-excerpt=\"Find out how much equity you have in your home and how much a lender will let you borrow. Enter your home&#039;s value, mortgage balances, and loan terms to see your equity, CLTV, borrowing power, and estimated monthly payment.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-loan\">\n    <span class=\"icon icon-shape-star-empty\" aria-hidden=\"true\"><\/span>\n  <\/button>\n  <div class=\"calcdash-favorite__tip\" aria-hidden=\"true\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n  <span class=\"sr-only\" role=\"status\" id=\"favorite-status\"><\/span>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/home-equity-calculator\/\" method=\"POST\" class=\"calculator\" id=\"calculator-67375\" data-post=\"67375\"><fieldset class=\"fieldset-input is-2\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"is-single field\" id=\"input-1\"><span class=\"font-semibold\">Home and Current Debt<\/span><\/div><div class=\"field\" id=\"input-2\"><label for=\"field-2\">Current home value<\/label><input type=\"text\" name=\"current_home_value\" id=\"field-2\" aria-describedby=\"calc-unit-2 calc-info-2\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0.01\" value=\"400000\"\/><div class=\"unit\" id=\"calc-unit-2\">$<\/div><small id=\"calc-info-2\">Recent appraised value or a current market estimate.<\/small><\/div><div class=\"field\" id=\"input-3\"><label for=\"field-3\">First mortgage balance<\/label><input type=\"text\" name=\"first_mortgage_balance\" id=\"field-3\" aria-describedby=\"calc-unit-3 calc-info-3\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"280000\"\/><div class=\"unit\" id=\"calc-unit-3\">$<\/div><small id=\"calc-info-3\">Remaining principal balance, not the original loan amount.<\/small><\/div><div class=\"field\" id=\"input-4\"><label for=\"field-4\">Second mortgage \/ HELOC balance<\/label><input type=\"text\" name=\"second_mortgage_heloc_balance\" id=\"field-4\" aria-describedby=\"calc-unit-4 calc-info-4\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"0\"\/><div class=\"unit\" id=\"calc-unit-4\">$<\/div><small id=\"calc-info-4\">Enter 0 if you have no second lien.<\/small><\/div><div class=\"is-single field\" id=\"input-5\"><span class=\"font-semibold\">Borrowing Capacity<\/span><\/div><div class=\"field\" id=\"input-6\"><label for=\"field-6\">Lender max combined LTV<\/label><div class=\"grid grid-cols-1\"><select id=\"field-6\" name=\"lender_max_combined_ltv\"><option value=\"80\" selected>80% CLTV<\/option><option value=\"85\">85% CLTV<\/option><option value=\"90\">90% CLTV<\/option><option value=\"custom\">Custom<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><div class=\"field\" id=\"input-7\" hidden><label for=\"field-7\">Custom max CLTV<\/label><input type=\"text\" name=\"custom_max_cltv\" id=\"field-7\" aria-describedby=\"calc-unit-7 calc-info-7\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"1\" max=\"100\" value=\"80\"\/><div class=\"unit\" id=\"calc-unit-7\">%<\/div><small id=\"calc-info-7\">Your lender&#039;s maximum combined loan-to-value including all mortgages.<\/small><\/div><div class=\"field\" id=\"input-8\"><label for=\"field-8\">Credit score range<\/label><div class=\"grid grid-cols-1\"><select id=\"field-8\" name=\"credit_score_range\"><option value=\"na\" selected>Not sure<\/option><option value=\"c740\">740+ (excellent)<\/option><option value=\"c720\">720\u2013739<\/option><option value=\"c680\">680\u2013719<\/option><option value=\"c660\">660\u2013679<\/option><option value=\"c620\">Below 660<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><div class=\"is-single field\" id=\"input-9\"><span class=\"font-semibold\">Home Equity Loan Payment Estimate<\/span><\/div><div class=\"field\" id=\"input-10\"><label for=\"field-10\">Loan rate (APR)<\/label><input type=\"text\" name=\"loan_rate_apr\" id=\"field-10\" aria-describedby=\"calc-unit-10 calc-info-10\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" max=\"100\" value=\"8.5\"\/><div class=\"unit\" id=\"calc-unit-10\">%<\/div><small id=\"calc-info-10\">Home equity loan and HELOC rates typically run above first-mortgage rates.<\/small><\/div><div class=\"field\" id=\"input-11\"><label for=\"field-11\">Loan term<\/label><div class=\"grid grid-cols-1\"><select id=\"field-11\" name=\"loan_term\"><option value=\"5\">5 years<\/option><option value=\"10\" selected>10 years<\/option><option value=\"15\">15 years<\/option><option value=\"20\">20 years<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><div class=\"is-single field\" id=\"input-12\"><span class=\"font-semibold\">Equity Projection<\/span><\/div><div class=\"field\" id=\"input-13\"><label for=\"field-13\">Years to project<\/label><input type=\"text\" name=\"years_to_project\" id=\"field-13\" aria-describedby=\"calc-unit-13\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"1\" max=\"30\" value=\"5\"\/><div class=\"unit\" id=\"calc-unit-13\">yrs<\/div><\/div><div class=\"field\" id=\"input-14\"><label for=\"field-14\">Expected appreciation<\/label><input type=\"number\" name=\"expected_appreciation\" id=\"field-14\" aria-describedby=\"calc-unit-14 calc-info-14\" min=\"-15\" max=\"25\" step=\"0.1\" value=\"3\"\/><div class=\"unit\" id=\"calc-unit-14\">% \/ yr<\/div><small id=\"calc-info-14\">U.S. long-run average is roughly 3\u20134% per year; enter a negative number for declining values.<\/small><\/div><div class=\"field\" id=\"input-15\"><label for=\"field-15\">Monthly P&amp;I payment<\/label><input type=\"text\" name=\"monthly_pi_payment\" id=\"field-15\" aria-describedby=\"calc-unit-15 calc-info-15\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"1800\"\/><div class=\"unit\" id=\"calc-unit-15\">$ \/ mo<\/div><small id=\"calc-info-15\">Total monthly principal &amp; interest on your first mortgage.<\/small><\/div><div class=\"field\" id=\"input-16\"><label for=\"field-16\">First mortgage rate<\/label><input type=\"text\" name=\"first_mortgage_rate\" id=\"field-16\" aria-describedby=\"calc-unit-16 calc-info-16\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" max=\"100\" value=\"6.5\"\/><div class=\"unit\" id=\"calc-unit-16\">%<\/div><small id=\"calc-info-16\">Used to split each payment into interest and principal.<\/small><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"67375\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> Home Equity Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>Your home equity<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-2\"><span class=\"field-title\"><span>Home equity share of value<\/span><\/span><span class=\"field-value\" id=\"result-2\" data-unit=\"%\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-3\"><span class=\"field-title\"><span>Current LTV (first mortgage)<\/span><\/span><span class=\"field-value\" id=\"result-3\" data-unit=\"%\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-4\"><span class=\"field-title\"><span>Current CLTV (all mortgages)<\/span><\/span><span class=\"field-value\" id=\"result-4\" data-unit=\"%\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-5\"><span class=\"field-title\"><span>Maximum you can borrow<\/span><\/span><span class=\"field-value\" id=\"result-5\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-6\"><span class=\"field-title\"><span>Est. monthly payment on that amount<\/span><\/span><span class=\"field-value\" id=\"result-6\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-7\"><span class=\"field-title\"><span>Projected equity (in the years entered)<\/span><\/span><span class=\"field-value\" id=\"result-7\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result is-column\" id=\"output-8\"><span class=\"field-title\"><span>Borrowing Power Details<\/span><\/span><span class=\"field-value\" id=\"result-8\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result is-column\" id=\"output-9\"><span class=\"field-title\"><span>Equity Projection Details<\/span><\/span><span class=\"field-value\" id=\"result-9\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><\/div><div class=\"result-actions\"><button type=\"button\" class=\"copy-link\"><svg viewBox=\"0 0 20 20\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M12.232 4.232a2.5 2.5 0 0 1 3.536 3.536l-1.225 1.224a.75.75 0 0 0 1.061 1.06l1.224-1.224a4 4 0 0 0-5.656-5.656l-3 3a4 4 0 0 0 .225 5.865.75.75 0 0 0 .977-1.138 2.5 2.5 0 0 1-.142-3.667l3-3Z\"\/><path d=\"M11.603 7.963a.75.75 0 0 0-.977 1.138 2.5 2.5 0 0 1 .142 3.667l-3 3a2.5 2.5 0 0 1-3.536-3.536l1.225-1.224a.75.75 0 0 0-1.061-1.06l-1.224 1.224a4 4 0 1 0 5.656 5.656l3-3a4 4 0 0 0-.225-5.865Z\"\/><\/svg><span class=\"copy-link__text\">Copy link to this calculation<\/span><\/button><span class=\"sr-only\" role=\"status\" id=\"copy-link-status\"><\/span><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"67375\" aria-live=\"polite\" aria-labelledby=\"calc-reactions-title\"><p id=\"calc-reactions-title\" class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/p><div role=\"group\" aria-labelledby=\"calc-reactions-title\" class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><div class=\"calcdash-ad not-prose calcdash-ad--calc_result calcdash-ad--in-article\"><ins class=\"adsbygoogle\" style=\"display:block\" data-ad-client=\"ca-pub-1721569815777345\" data-ad-slot=\"6317458308\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\"><\/ins><script>(adsbygoogle = window.adsbygoogle || []).push({});<\/script><\/div>\n<style id=\"wpcoderpro-inline-1\">.formula-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>Home Equity Formula<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n\\[ E = V - (B_1 + B_2), \\qquad \\text{CLTV} = \\frac{B_1 + B_2}{V} \\times 100\\%, \\qquad L = \\max\\bigl(0,\\; cV - (B_1 + B_2)\\bigr) \\]\n<\/div>\r\n\t<\/figure>\r\n\t<\/p>\n<p><strong>Where:<\/strong><\/p>\n<ul>\n<li>\\(E\\) \u2014 home equity ($)<\/li>\n<li>\\(V\\) \u2014 current home value ($)<\/li>\n<li>\\(B_1\\) \u2014 first mortgage balance ($)<\/li>\n<li>\\(B_2\\) \u2014 second mortgage \/ HELOC balance ($)<\/li>\n<li>\\(c\\) \u2014 the lender's maximum CLTV as a decimal (80% \u2192 0.80)<\/li>\n<li>\\(L\\) \u2014 the maximum additional amount you can borrow ($)<\/li>\n<\/ul>\n<p>Equity is what the home is worth minus everything still owed on it. Borrowing power is the room left between the lender's combined-loan-to-value cap and your current total mortgage debt.<\/p>\n<p>\r\n<\/section>\n<style id=\"wpcoderpro-inline-459\">.calculation-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section id=\"calculation\" class=\"calculation-box\" aria-labelledby=\"calculation-title\">\r\n\t<div id=\"calculation-title\" class=\"not-prose font-display\"><span class=\"icon icon-unordered-list\" aria-hidden=\"true\"><\/span><h2>Home Equity \u2013 Calculation Example<\/h2><\/div>\r\n\r\n<\/p>\n<p><strong>Example:<\/strong> a home worth $400,000 with a $280,000 first mortgage and no second lien; the lender caps combined debt at 80% CLTV, and a 10-year home equity loan is available at 8.5% APR.<\/p>\n<p>\\[ E = 400{,}000 - 280{,}000 = 120{,}000 \\]<\/p>\n<p>\\[ \\text{CLTV} = \\frac{280{,}000}{400{,}000} \\times 100\\% = 70\\% \\]<\/p>\n<p>\\[ L = 0.80 \\times 400{,}000 - 280{,}000 = 320{,}000 - 280{,}000 = 40{,}000 \\]<\/p>\n<p><strong>Result:<\/strong> equity of <strong>$120,000<\/strong> (30% of the home's value) and up to <strong>$40,000<\/strong> available to borrow. A 10-year home equity loan for $40,000 at 8.5% APR costs about <strong>$495.94 per month<\/strong>. Projecting 5 years of 3% appreciation while paying $1,800\/month P&amp;I at 6.5% on the first mortgage, the balance falls to roughly $260,005 and the value grows to about $463,710 \u2014 projected equity \u2248 <strong>$203,705<\/strong>.<\/p>\n<p>\n\r\n<\/section>\n<h2>How to use the calculator<\/h2>\n<ol>\n<li>Enter your <strong>Current home value<\/strong> \u2014 use a recent appraisal or a realistic market estimate, not the purchase price.<\/li>\n<li>Enter the <strong>First mortgage balance<\/strong> (remaining principal, not the original loan) and the <strong>Second mortgage \/ HELOC balance<\/strong>. Enter 0 if you have no second lien.<\/li>\n<li>Choose the <strong>Lender max combined LTV<\/strong> \u2014 80% is the most common cap; pick <em>Custom<\/em> to enter your lender's exact limit in the <strong>Custom max CLTV<\/strong> field.<\/li>\n<li>Optionally select a <strong>Credit score range<\/strong>; it only adds guidance on CLTV limits and pricing, it does not change the math.<\/li>\n<li>Enter the <strong>Loan rate (APR)<\/strong> and <strong>Loan term<\/strong> to estimate the monthly payment on the maximum borrowable amount.<\/li>\n<li>For the projection, fill in <strong>Years to project<\/strong>, <strong>Expected appreciation<\/strong> (% per year), your total <strong>Monthly P&amp;I payment<\/strong> on the first mortgage, and the <strong>First mortgage rate<\/strong> \u2014 the last two are used to split each payment into interest and principal so the balance can be tracked year by year.<\/li>\n<\/ol>\n<h2>What home equity is and why it matters<\/h2>\n<p>Home equity is the portion of your home you actually own: its current market value minus every dollar owed against it. If your home is worth $400,000 and you owe $280,000 on the mortgage, you have $120,000 of equity. Equity grows two ways \u2014 the mortgage balance shrinks as you make payments, and the home's value may rise over time. It is often the largest single component of a household's net worth.<\/p>\n<p>Lenders measure risk with loan-to-value ratios. <strong>LTV<\/strong> counts only the first mortgage against the home's value, while <strong>CLTV<\/strong> (combined loan-to-value) counts all liens, including second mortgages and HELOCs. Most home equity loans and HELOCs are capped at 80\u201385% CLTV, meaning the lender wants you to keep at least 15\u201320% of the value as your own stake. A few programs go to 90%, usually at higher rates.<\/p>\n<p>Your borrowing power is the gap between what the lender allows as total mortgage debt and what you currently owe. A $400,000 home at an 80% CLTV limit supports up to $320,000 of combined liens; if you owe $280,000, about $40,000 of new borrowing is possible. Note that approving a loan involves more than equity \u2014 lenders also weigh credit score, income, and debt-to-income ratio, which you can check with the <a href=\"https:\/\/wpcalc.com\/en\/finance\/debt-to-income-ratio-calculator\/\">DTI ratio calculator<\/a>.<\/p>\n<p>The equity projection shows the compounding effect of paying down the mortgage while (hopefully) the home appreciates. Even modest appreciation of 3\u20134% per year produces meaningful gains because it applies to the full value of the home, not just your equity share.<\/p>\n<h2>Assumptions, limitations, and practical tips<\/h2>\n<ul>\n<li><strong>Value estimates are snapshots.<\/strong> A home is only worth what a buyer pays or an appraiser confirms. Your actual CLTV at closing depends on the lender's appraisal, which may differ from online estimates.<\/li>\n<li><strong>CLTV is a cap, not a promise.<\/strong> Reaching the maximum CLTV also means the largest possible payment. Many borrowers take less than the full amount to keep payments comfortable \u2014 compare against your budget with the <a href=\"https:\/\/wpcalc.com\/en\/finance\/budget-calculator-50-30-20-rule\/\">50\/30\/20 budget calculator<\/a>.<\/li>\n<li><strong>HELOC rates are usually variable.<\/strong> The payment estimate assumes a fixed-rate home equity loan; a HELOC's rate and payment can rise after the draw period.<\/li>\n<li><strong>The projection simplifies reality.<\/strong> It assumes the second mortgage balance stays flat (interest-only), appreciation compounds at a constant rate you choose, and the P&amp;I payment never changes. Real appreciation swings year to year, and extra principal payments \u2014 which you can model with the <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-payoff-calculator-with-extra-payments\/\">mortgage payoff calculator<\/a> \u2014 would reduce balances faster.<\/li>\n<li><strong>Don't forget the other costs of ownership.<\/strong> Property taxes and insurance continue regardless of equity; the <a href=\"https:\/\/wpcalc.com\/en\/finance\/property-tax-calculator\/\">property tax calculator<\/a> helps you budget for them.<\/li>\n<li>Negative equity (CLTV above 100%) means you owe more than the home is worth. No home equity borrowing is possible in that situation until values recover or balances fall.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Find out how much equity you have in your home and how much a lender will let you borrow. Enter your home's value, mortgage balances, and loan terms to see your equity, CLTV, borrowing power, and estimated monthly payment.<\/p>\n","protected":false},"author":3168,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[30],"class_list":["post-67375","post","type-post","status-publish","format-standard","hentry","category-finance","tag-mortgage"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/67375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/3168"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=67375"}],"version-history":[{"count":1,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/67375\/revisions"}],"predecessor-version":[{"id":67376,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/67375\/revisions\/67376"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=67375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=67375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=67375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}