Enter Current home value ($), Mortgage balance ($) and Interest rate (%) and the remaining scenario settings to review available home equity with this tool. An equity amount and a borrowing limit are different: a lender may allow financing only up to a share of property value after existing loans.
Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
P = principal, r = periodic interest rate, n = number of payments.The calculation links Current home value ($), Mortgage balance ($) and Interest rate (%) to available home equity. An equity amount and a borrowing limit are different: a lender may allow financing only up to a share of property value after existing loans.
Enter Current home value ($), Mortgage balance ($) and Interest rate (%) and the remaining scenario settings to review available home equity with this tool. An equity amount and a borrowing limit are different: a lender may allow financing only up to a share of property value after existing loans.
Estimate a fixed installment payment on borrowing against home equity. Compare available equity with the payment on the amount you intend to borrow.
An equity amount and a borrowing limit are different: a lender may allow financing only up to a share of property value after existing loans.
Prepare Current home value ($), Mortgage balance ($), Interest rate (%), Loan term (years), LTV limit (%) and Closing costs ($). Enter the property and existing-loan figures where requested, then calculate the payment on the proposed new principal.
An equity amount and a borrowing limit are different: a lender may allow financing only up to a share of property value after existing loans. Valuation, combined loan-to-value limits, closing costs and credit terms vary. An estimate does not constitute approval or assess the risk of secured borrowing.
Use the full settings in the worked-example table. They produce Available Home Equity: $90000; Monthly payment: 834. Compare the method and units as well as the displayed number.
The displayed relationship is Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] P = principal, r = periodic interest rate, n = number of payments. Enter the property and existing-loan figures where requested, then calculate the payment on the proposed new principal.
Valuation, combined loan-to-value limits, closing costs and credit terms vary. An estimate does not constitute approval or assess the risk of secured borrowing. For a transaction or account decision, compare the inputs with the applicable statement, contract or official rules.
Worked home equity loan calculator example. Set Current home value ($) = 400000; Mortgage balance ($) = 250000; Interest rate (%) = 7.5; Loan term (years) = 15 years; LTV limit (%) = 85%; Closing costs ($) = 2000. The corresponding output is Available Home Equity: $90000; Monthly payment: 834. An equity amount and a borrowing limit are different: a lender may allow financing only up to a share of property value after existing loans.
Estimate a fixed installment payment on borrowing against home equity. Compare available equity with the payment on the amount you intend to borrow.
Enter the property and existing-loan figures where requested, then calculate the payment on the proposed new principal.
| Field | Example value | Entry check |
|---|---|---|
| Current home value ($) | 400000 | Check whether this amount is one-time, monthly or annual before entering it. |
| Mortgage balance ($) | 250000 | Use the amount for this scenario in the currency and period shown by the field. |
| Interest rate (%) | 7.5 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Loan term (years) | 15 years | Use the period unit in the field label; months and years are not interchangeable. |
| LTV limit (%) | 85% | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Closing costs ($) | 2000 | Check whether this amount is one-time, monthly or annual before entering it. |
Relationship used for this example: Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] P = principal, r = periodic interest rate, n = number of payments.
An equity amount and a borrowing limit are different: a lender may allow financing only up to a share of property value after existing loans.
| Output | Displayed result |
|---|---|
| Available Home Equity | $90000 |
| Monthly payment | 834 |
With these settings, available home equity is $90000. Use the same units and calculation mode when reproducing this example.
An equity amount and a borrowing limit are different: a lender may allow financing only up to a share of property value after existing loans. Valuation, combined loan-to-value limits, closing costs and credit terms vary. An estimate does not constitute approval or assess the risk of secured borrowing.
Replace the illustrative current home value ($) value (400000) with your own value, then complete the other inputs for the same scenario. Enter the property and existing-loan figures where requested, then calculate the payment on the proposed new principal.