Home Equity Loan Calculator
Calculate your monthly payments, LTV ratio, and verify your eligibility instantly.
Loan Details
Your Estimate
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What is a Home Equity Loan?
A Home Equity Loan, often referred to as a second mortgage, allows homeowners to borrow against the equity they have built up in their property. Unlike a HELOC (Home Equity Line of Credit), a standard home equity loan provides a lump sum of cash with a fixed interest rate and fixed monthly payments.
How to Use This Home Equity Loan Calculator
Our free calculator helps you estimate your monthly payments and check your LTV ratio. Follow these steps:
- Home Value: Enter the current market value of your property.
- Existing Mortgage: Input the amount you still owe on your primary mortgage.
- Desired Loan: Enter the cash amount you wish to borrow.
- Interest Rate & Term: Select the current market rate and how long you need to repay the loan.
Understanding Your LTV Ratio
The Loan-to-Value (LTV) ratio is a critical factor lenders use to approve loans. It is calculated by adding your existing mortgage balance to your desired loan amount, divided by your home's value. Most lenders prefer an LTV below 80-85%.
Home Equity Loan vs. HELOC
While both use your home as collateral, a Home Equity Loan offers stability with fixed rates, whereas a HELOC has variable rates and works like a credit card. Use this calculator specifically for fixed-rate home equity loans.