Home Equity Line of Credit Calculator

Published on Jul 15, 2015 10:06 pm

You might’ve heard others talk about borrowing against the equity in their homes. Your home equity is the difference between the fair market value of your house and what you still owe on your home. For example, if your home is valued at $200,000 and you owe the mortgage company $175,000, your home equity would be $25,000. A Home Equity Line of Credit (HELOC) is a type of revolving credit that allows you to borrow against your home equity. Our Home Equity Line of Credit Calculator can help you estimate how much credit you might be able to obtain using your home’s equity.

Home Equity Line of Credit Calculator Definitions

  • Equity — The difference between the fair market value of your home and the total amount you owe to your mortgage company and any other lienholder.
  • Current market value — The selling price you could reasonably expect to get for your home if you were to sell it today. A number of online resources can help you estimate the current market value.
  • Outstanding mortgage balance — The total you owe in principle and interest on your current home mortgage. Your lender can give you this exact amount.
  • Loan-to-Value — The ratio of your first mortgage as a percentage of the total appraised value of your home.

Get Your Free Experian Credit Report No Credit Card Required

This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc., an Experian company. © 2015 ConsumerInfo.com, Inc. All rights reserved.

More like this