Estimate your home equity line of credit — your available credit, the low interest-only payment during the draw period, and the higher payment once repayment begins.
This is an estimate. A HELOC is secured by your home, and most HELOCs carry a variable rate, so your payment can rise if rates increase. Lender limits, fees, and draw/repayment terms vary. Borrowing against your home puts it at risk if you can't repay. This tool is for educational purposes only and is not financial or mortgage advice.
A home equity line of credit is a revolving credit line secured by your home, much like a credit card with your house as collateral. Instead of getting a lump sum, you're approved for a limit and borrow what you need, when you need it, paying interest only on the amount you've actually drawn.
A HELOC runs in two phases. During the draw period you can borrow and repay freely, usually making interest-only payments. When the draw period ends, the line closes to new borrowing and you enter the repayment period, paying back both principal and interest. Almost all HELOCs carry a variable rate tied to a benchmark, so the payment can move over time.
Lenders cap your total mortgage debt at a percentage of your home's value, called the combined loan-to-value (CLTV) limit — commonly 80% to 90%. Your available credit is that limit minus what you still owe on your first mortgage.
On a $500,000 home with an 85% CLTV cap and a $300,000 mortgage, the most you could owe in total is $425,000, leaving about $125,000 of borrowing room. A higher home value or a lower mortgage balance increases what you can access; the calculator flags it when your requested amount exceeds this limit.
Interest-only draw payments are deceptively low because they don't reduce your balance at all. When repayment starts, that same balance has to be paid off — principal plus interest — over the repayment term, so the monthly payment can jump sharply.
The calculator shows both numbers and the size of the jump so it isn't a surprise later. If the repayment payment looks unaffordable, you can plan to pay down principal during the draw period, refinance the balance, or borrow less up front.
Because most HELOC rates are variable, a rising-rate environment increases both your interest-only and repayment payments. Budget for the possibility that the rate is higher in a few years than it is today.
The bigger risk is the collateral: your home secures the line. Missing payments can lead to foreclosure, so a HELOC is best used for value-adding purposes like home improvements or consolidating higher-rate debt — not for everyday spending you can't comfortably repay.
A HELOC offers flexible, revolving access at a variable rate — good when you'll borrow over time, such as a phased renovation. A home equity loan gives a fixed lump sum at a fixed rate and payment, which suits a one-time, known expense. A cash-out refinance replaces your entire mortgage with a larger one, which can make sense if you also want to change your first mortgage rate.
The right choice depends on how much you need, whether you want rate certainty, and the closing costs each option carries. Comparing offers for all three is the only reliable way to see which is cheapest for you.
Typically your home's value times the lender's combined loan-to-value cap (often 80%–90%), minus your current mortgage balance. Income, credit, and the property also factor into the final limit a lender offers.
It's the first phase, often 10 years, when you can borrow against the line and usually make interest-only payments. After it ends you can't draw more and must repay principal and interest.
Interest-only payments don't reduce the balance. When repayment starts, that full balance is amortized over the repayment term, so principal is added to each payment and the monthly amount rises.
Most HELOCs are variable, tied to a benchmark rate, so your payment can change. Some lenders offer a fixed-rate option to lock in a portion of the balance.
A HELOC is secured by your home, so missed payments can ultimately lead to foreclosure. Borrow conservatively and make sure you can handle the repayment-period payment, not just the interest-only one.