Home Equity Loan Calculator
Price a fixed-rate second mortgage against your equity, with a level payment and a defined end date rather than a variable line.
Home Equity Loan Calculator
Results recalculate instantly on every keystroke. Nothing you type is transmitted.
What this result does not account for
- Results are a model, not a quotation — an institution's own figures govern.
- Every input is an assumption; change one and the answer changes with it.
- Rounding is applied only at the display layer, so totals may differ by a cent from a statement that rounds each line.
In short: A home equity loan advances a lump sum at a fixed rate over a fixed term, secured as a second mortgage. Borrowing $75,000 at 8.0% over 15 years costs $716.74 a month and $54,013.03 in total interest, with the payment fixed for the whole term.
Formula
Identical amortisation to a first mortgage. The distinction is legal priority, not mathematics: this lender is repaid second in a forced sale.
Worked Example
- Establish capacity. 85% of $420,000 less $260,000 = $97,000.00 available.
- Set the loan. $75,000 at 8.0% over 180 months.
- Amortise. The level payment is $716.74.
- Total the interest. $716.74 × 180 − $75,000 = $54,013.03.
- Check the position. CLTV rises to 79.76%, leaving $85,000.00 of equity.
Analyst note. Interest equals 72.0% of the amount borrowed over fifteen years. Shortening to ten years raises the payment to $909.96 but cuts total interest to $34,194.83 — a saving of $19,818.20 for $193.22 more per month, which is one of the better returns available on a monthly budget increase.
Strengths & Limits Of This Model
Where this engine is strong
- Runs entirely in your browser — no figure you type is transmitted or stored.
- Shows the full working, so every number can be traced and challenged.
- Free, unmetered and free of affiliate incentives.
Where it stops
- Generalised assumptions cannot capture every individual circumstance.
- Jurisdiction-specific rules and mid-year changes may not be reflected.
- A model output is not a substitute for a professional review of your position.
Practical Use Cases
Funding a single large expense
A defined lump sum with a fixed rate and end date suits a known cost far better than a revolving line. Compare against the variable alternative with the HELOC Calculator.
Locking a rate when increases are expected
Unlike a HELOC, the rate cannot move. In a rising-rate environment that certainty is worth a modest premium over the initial variable rate.
Borrowing without disturbing a low first mortgage
A second mortgage leaves an existing low-rate first mortgage intact, which a cash-out refinance would destroy. Test that comparison with the Refinance Calculator.
Methodology & Editorial Standards
The maximum advance is the property value multiplied by the maximum combined loan-to-value ratio, less the first mortgage balance; the calculator refuses amounts above that ceiling rather than silently producing an unavailable figure. The payment is a standard amortising annuity at a fixed rate, identical in mathematics to a first mortgage. Rates on home equity loans typically sit one to two points above first-mortgage rates because the lender occupies second lien position and is repaid only after the first mortgage in a forced sale. Closing costs, which are usually modest and sometimes waived, are not included. The engine implements the standard published formula for this calculation. Inputs are validated for domain and sign before evaluation, and any undefined case returns an em-dash rather than a spurious value.
Computation runs in IEEE-754 double precision at full internal precision; rounding to two decimal places occurs strictly at the display layer, so no cumulative drift enters the result. All monetary outputs use accounting presentation — grouped thousands, two decimals, negatives in parentheses — so figures can be transcribed directly into a model or working paper. Division-by-zero and out-of-domain inputs return an em-dash rather than a misleading number.
This engine was reconciled against an independent reference implementation and hand-verified for the worked example above before release. Our full five-stage review process is published on the About Us page.
Disclaimer. This calculator is provided for informational and modelling purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Verify all figures with a qualified professional before acting on them.
Home Equity Loan Calculator — 20 Expert FAQs
20 analyst-written answers to the questions practitioners actually ask — optimised for voice and answer-engine retrieval.
How much can I borrow against my home?
Generally up to 85% CLTV. With a $420,000 home and $260,000 first mortgage, that is $97,000.00. Your total equity is $160,000.00, but lenders will not let you access all of it.
What is the difference between a home equity loan and a HELOC?
A home equity loan is a fixed-rate lump sum with a level payment; a HELOC is a variable-rate revolving line where you pay interest only on what you draw. Certainty versus flexibility.
Why are home equity loan rates higher than first mortgage rates?
Because the lender holds second lien position and is repaid only after the first mortgage in a forced sale. That subordinate risk typically costs one to two percentage points.
Is a shorter term worth it?
Usually yes. Moving from fifteen years to ten raises the payment from $716.74 to $909.96 but saves $19,818.20 of interest — an excellent return on $193.22 a month if the budget allows.
Can I lose my home if I default?
Yes. It is a mortgage secured against the property, and the lender can foreclose. This is the essential difference from unsecured borrowing and the reason consolidation decisions deserve care.
Is the interest tax deductible?
Only if the funds buy, build or substantially improve the home securing the loan, subject to overall limits. Using the money for other purposes generally makes the interest non-deductible.
What are the closing costs?
Usually modest compared with a first mortgage, often 2% to 5% of the loan, and some lenders waive them in exchange for a commitment to keep the loan open for a minimum period.
Can I get one with bad credit?
It is harder than for a first mortgage since it is subordinate debt. Expect a minimum score around 620, lower CLTV limits and materially higher rates as the score declines.
Should I do this or a cash-out refinance?
If your first mortgage carries a low rate, a second mortgage preserves it while a cash-out refinance would reprice the entire balance at today's rate. That usually settles the question decisively.
How long does approval take?
Typically two to six weeks, involving an appraisal and a title search much like a first mortgage, though the process is generally lighter and some lenders use automated valuations.
Can I have both a HELOC and a home equity loan?
Yes, provided the combined debt stays within the CLTV limit. Some borrowers take a fixed loan for a known cost and keep a small line available for contingencies.
Does taking one affect my first mortgage?
No. The first mortgage keeps its rate, term and priority. The new loan sits behind it in the lien order, which is precisely why it is priced higher.
Is this home equity loan calculator free to use?
Yes. It is free, requires no account, and has no usage limits. ApexConverter is funded by contextual advertising, never by selling user data.
Is my data sent to a server?
No. The engine runs as Vanilla JavaScript inside your browser under our Zero-Server Client-Side Execution model. Your figures are computed locally and are never transmitted, logged, or stored.
How accurate is this calculator?
It applies the standard closed-form formula in IEEE-754 double precision, rounding only at the display layer. The engine is reconciled against an independent reference implementation before release.
Does it work on mobile?
Yes. The interface is mobile-first with numeric keypad hints and is tested down to a 320-pixel viewport with no horizontal scrolling.
Can I use it offline?
Largely, yes. Because computation is client-side, the page continues to calculate without a network connection once it has loaded.
Which currency does it use?
Amounts display in US$ accounting format, but the underlying mathematics is currency-agnostic. The result is identical in any currency, so simply read the figures in your own.
Why does a result show an em-dash?
An em-dash indicates the calculation is not defined for the inputs given — typically a division by zero or a value outside the valid domain. We show a dash rather than a misleading number.
How do I report an error?
Email apexconverter.praxiscalc@gmail.com with the tool URL, your exact inputs, the output received and the output you expected. Verified mathematical errors are patched within 72 hours.