Calculators · Buying & Financing
Home Equity Loan and HELOC Calculator
Estimate how much equity you can borrow under a combined loan-to-value limit, and compare a fixed home equity loan with a HELOC's draw and repayment payments.
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How this calculator works
A home equity loan is a fixed amount repaid on a fixed schedule. A HELOC is a line of credit with a variable rate, usually interest-only during a draw period, then repaid over a set number of years.
In Texas, home equity loans and HELOCs on a homestead are limited to 80% of the home's value when combined with other loans on it, under the Texas Constitution.
- Available equity = value × maximum combined loan-to-value − what you owe.
- HELOC rows show the payment if the full amount is drawn, at the starting rate and at higher rates you choose. They are not forecasts.
Worked example
Example values are illustrative, not quotes or market data. These are the numbers the calculator above starts with.
Inputs
- Estimated home value
- $400,000
- Lender's maximum combined loan-to-value
- 80%
- Amount you want
- $50,000
- Rate
- 8%
- Years
- 15
- Starting rate
- 8.5%
- Draw period (interest-only) years
- 10
- Repayment period years
- 20
- Test rate increases of
- 1%
Results
- Available
- $120,000
- Fixed loan payment
- $478
- HELOC draw payment
- $354
- HELOC repayment payment
- $434
Common questions
How much can I borrow against my Texas home?
For a homestead, total loans secured by the home generally cannot exceed 80% of its value for a home equity loan or HELOC. Lenders may set lower limits.
Is a HELOC rate fixed?
Usually not. Most HELOC rates follow the prime rate and change when it does.
What happens when the draw period ends?
You stop drawing and start repaying principal and interest, so the payment usually rises.
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Estimate only. Actual loan terms, eligibility, insurance, taxes, and settlement charges require verification. These are planning estimates, not a lender Loan Estimate, Closing Disclosure, appraisal, or approval. Michael O'Neal is a real estate broker, not a lender, appraiser, attorney or tax adviser.
Next step
Want a real financing quote? Connect with Home Front Mortgage.
Andrew Fairleigh, Mortgage Loan Originator, Home Front Mortgage, NMLS #1878546. (979) 595-8979 · [email protected]
Rates in these calculators are examples, not Home Front quotes. Your application goes to Home Front's secure site. Do not send financial documents through this website.
Affiliated business arrangement disclosure. This is to give you notice that some agents and owners at Keller Williams Realty Northeast, including Michael O'Neal, have a business relationship with certain providers of services related to your purchase, sale or refinance of real estate, including Home Front Mortgage and Keystone Title & Escrow. Because of this relationship, a referral may provide some owners and agents at Keller Williams Realty Northeast a financial or other benefit. You are NOT required to use either company as a condition for your purchase, your financing or refinance, or any other transaction related to a property. There are frequently other providers available with similar services. You are free to shop around to determine that you are receiving the best services and the best rate for these services. You will be given the written Affiliated Business Arrangement Disclosure, including estimated charges, to review and sign.