Calculate monthly payments, total interest, and amortization for a Home Equity Loan. Includes a maximum borrowable amount estimator based on your home value, current mortgage, and LTV limits.
Most lenders cap at 80-85% combined LTV
Apply extra payments to principal to pay off the loan faster and save on interest.
| Period | Payment | Interest | Principal | Remaining Balance |
|---|---|---|---|---|
| Click Calculate Payment to generate schedule | ||||
This tool helps you estimate payments for a Home Equity Loan (HEL) — a fixed-rate, fixed-term loan that uses your home as collateral. It also includes a powerful **Maximum Borrowable Amount** estimator based on your home's value and current mortgage.
| Input | Definition & Guidance | Sample |
|---|---|---|
| Loan Amount | The amount you want to borrow against your home equity | $150,000 |
| Interest Rate | Annual interest rate for the home equity loan (usually higher than primary mortgage) | 7.50% |
| Loan Term | Repayment period in years (5–30 years; 10–15 years are most common for HEL) | 15 years |
| Closing Costs | Upfront fees (appraisal, title, origination, etc.). Can be paid in cash or financed into the loan. | $4,500 |
| Current Home Value | Estimated current market value of your home (use recent appraisal or online estimate) | $650,000 |
| Outstanding Mortgage Balance | Current remaining balance on your primary mortgage | $280,000 |
| Maximum Allowed LTV | Lender's maximum Loan-to-Value ratio (typically 80–85%). Higher LTV = more risk for lender. | 80% |
| Extra Monthly Prepayment | Additional amount paid toward principal each month to shorten the loan and save interest | $300 |
Loan-to-Value (LTV) = (Existing Mortgage + New Home Equity Loan) ÷ Current Home Value
Example: $280k mortgage + $150k HEL on a $650k home = ($430k ÷ $650k) = 66.2% LTV
Most lenders prefer total LTV under 80–85%. The "Calculate Max Loan Amount" button shows the maximum you can typically borrow while staying within the chosen LTV limit.
P = Final Loan Amount, r = monthly rate, n = total months
Each month the extra prepayment is added to the regular principal portion. This reduces the remaining balance faster, shortens the total term, and significantly lowers total interest paid.