How Much Home Equity Do You Have?
Enter your home value and mortgage balance to instantly calculate your available equity, maximum HELOC amount, and home equity loan limit. No signup required.
Home Equity Calculator
Enter your current home value and remaining mortgage balance to see your equity position.
Available Home Equity
$170,000
37.8% of home value
Max HELOC (85% LTV)
$102,500
Max HELOC (80% LTV)
$80,000
Max HE Loan (85% LTV)
$102,500
Current LTV Ratio
62.2%
Results are estimates based on typical lender guidelines (80-85% combined LTV). Actual approval depends on credit score, income, and individual lender requirements.
How Home Equity Works
Understanding equity, LTV ratios, and how lenders calculate your borrowing limit.
Equity builds over time
Every mortgage payment reduces your loan balance, building equity. Home price appreciation also increases equity independently of your payments.
LTV ratio is the key number
Lenders focus on your loan-to-value (LTV) ratio. Below 80% LTV gives you the most borrowing options and best rates. Above 90% LTV and most equity products are unavailable.
Combined LTV applies
When adding a HELOC or second mortgage, lenders calculate your combined LTV (CLTV) - your primary mortgage plus the new loan divided by home value. This must stay within their limits.
LTV Ratio Reference Table
Your loan-to-value ratio determines what equity products you can access and at what rates.
| LTV Ratio | Equity % | Options Available |
|---|---|---|
| Below 60% | 40%+ | Best rates, all products available |
| 60% - 75% | 25-40% | Excellent rates, HELOC and HE loan |
| 75% - 80% | 20-25% | Good rates, HELOC and HE loan |
| 80% - 85% | 15-20% | Some lenders, slightly higher rates |
| 85% - 90% | 10-15% | Limited options, PMI may still apply |
| Above 90% | Below 10% | Most equity products unavailable |
Frequently Asked Questions
How do I calculate my home equity?
Home equity is your home's current market value minus your remaining mortgage balance. For example, if your home is worth $450,000 and you owe $280,000, your equity is $170,000. This represents the portion of your home you truly own.
How much of my equity can I borrow?
Most lenders allow you to borrow up to 80-85% of your home's value combined (your existing mortgage plus the new HELOC or loan). This means your combined loan-to-value (CLTV) ratio must stay at or below 80-85%. The calculator above shows both thresholds so you can see the range.
What is the difference between a HELOC and a home equity loan?
A HELOC (home equity line of credit) is a revolving line of credit you draw from as needed, similar to a credit card. The rate is typically variable. A home equity loan gives you a lump sum at a fixed interest rate with fixed monthly payments. Both use your home as collateral.
What credit score do I need for a HELOC?
Most lenders require a minimum credit score of 620 to qualify for a HELOC, with the best rates typically reserved for scores above 720. Lenders also look at your debt-to-income ratio (usually below 43%) and verify your income and employment.
How long does it take to get a HELOC?
The HELOC approval process typically takes 2 to 6 weeks. It involves an application, credit check, property appraisal, title search, and underwriting review. Some online lenders now offer faster timelines of 2 to 3 weeks for straightforward applications.
Can I lose my home if I default on a HELOC?
Yes. A HELOC and home equity loan are both secured by your home as collateral. If you stop making payments, the lender can foreclose. This is why it is important to only borrow what you can comfortably repay and to have a clear plan for the funds.