Home Equity Loan Calculator
Your home equity is the difference between your home's market value and the amount you still owe on your mortgage. Lenders use the Loan-to-Value (LTV) ratio to determine how much you can borrow against that equity.
What is LTV?Most lenders will allow you to borrow up to a combined LTV of 80% or 85%. This means the total of your current mortgage balance plus your new home equity loan cannot exceed 80-85% of your home's value. This calculator uses a standard 80% LTV for its estimate.
$$ \text{Equity} = \text{Home Value} - \text{Mortgage Balance} $$ $$ \text{Available Equity} = (\text{Home Value} \times 0.80) - \text{Mortgage Balance} $$
This calculator provides an estimate and is not a loan offer or financial advice. Your ability to borrow depends on your credit score, income, and the lender's specific requirements.
Estimate your available equity based on an 80% LTV.