How is this different from the mortgage calculator?

The mortgage calculator models purchase financing. This page tests a second-lien home equity amount against an existing mortgage and entered CLTV.

How is it different from a HELOC?

This model assumes one fixed lump-sum loan and level installment payments. A HELOC is a revolving line that commonly has draw and repayment phases and may have a variable rate.

Are closing costs included?

No. Appraisal, origination, recording, title and other costs are excluded.

What happens at a zero rate?

The requested principal is divided evenly by the number of months.

Can home value change?

Yes. This tool holds your entered value constant; actual appraisal values and market prices can differ.

Home Equity Loan LTV and Fixed-Payment Estimate

Compare an entered combined-LTV threshold with a separate fixed-rate installment scenario.

Arithmetic equity estimate

Entered-CLTV capacity

Fixed payment and interest

CurrencyEstimated home valueUse your own value assumption; this tool does not appraise property.Existing mortgage balanceCombined LTV scenario (%)A user-entered comparison threshold, not a lender limit or approval rule.Home equity loan amount to modelFixed nominal annual rate (%)Enter a hypothetical or disclosed rate; no live rate is supplied.Repayment term in months

How to Model a Home Equity Loan

Use property and loan assumptions from your own records or disclosures. Keep the LTV comparison distinct from lender qualification.

Select a display currency; no conversion is performed.

Equity is not the same as borrowable proceeds

Home value minus mortgage balance is arithmetic equity. A CLTV scenario reserves part of that value, and actual proceeds can be lower after underwriting and costs.

Two Calculations, No Eligibility Promise

First, the tool multiplies estimated home value by your entered combined-LTV percentage and subtracts the existing mortgage balance. A negative amount is floored at zero. Second, it amortizes the requested home equity loan as a separate fixed-rate installment loan. It reports whether the request fits the entered threshold only as arithmetic; it does not know a lender's limit or your qualification.

Home Equity Loan Examples

Request below entered 80% CLTV

Property and fixed-loan assumptions

homeValue:500000

mortgageBalance:300000

maxCombinedLtv:80%

requestedLoan:75000

annualRate:8%

termMonths:120

LTV and payment estimate

$100,000 available at entered CLTV; about $909.96 monthly

The modeled combined balance is $375,000, or 75% of the entered home value.

No capacity at entered threshold

Property and fixed-loan assumptions

homeValue:200000

mortgageBalance:180000

maxCombinedLtv:80%

requestedLoan:10000

annualRate:0%

termMonths:10

LTV and payment estimate

$0 available at entered CLTV; $1,000 monthly scenario

The payment is still shown for comparison, but the request exceeds the user-entered threshold and does not imply availability.

Check every lien and cost

A lender's combined balance may include other liens, and net proceeds may be reduced by transaction costs.

Frequently Asked Questions

No. It is arithmetic at a percentage you entered, not an underwriting decision or lender policy.

Still have questions about this calculation?

Try the Calculator

Home Equity, CLTV and Payment Formulas

The capacity estimate uses an entered combined-LTV percentage; the payment uses standard fixed-rate amortization.

Formula

home value − existing mortgage balance

Arithmetic equity

home value − existing mortgage balance

Available at entered CLTV

max(0, home value × entered CLTV − existing mortgage balance)

Resulting CLTV

(existing mortgage + requested loan) ÷ home value × 100

Fixed payment

PMT = P × r / (1 − (1+r)^−n)

Scientific Background

CFPB describes home equity loans as borrowing secured by home equity and explains that costs and risks matter. The Federal Reserve describes loan-to-value as a loan amount relative to property value. This calculator turns only entered assumptions into arithmetic estimates.