Home Equity Calculator
Calculate your home equity and discover your borrowing power. See how much you can access with a HELOC or cash-out refinance.
Ready to Tap Your Home Equity?
Get competitive HELOC rates or explore cash-out refinance options. Compare offers from top lenders and access your equity today.
Home Equity Calculator
Calculate your home equity and borrowing power
Use Zillow, Redfin, or recent appraisal
Kitchen, bath, additions, etc.
📊 Quick Stats
💰 Your Total Home Equity
$170,895.002
40.7% of home value
🏠 Home Value
$420,000
Current market value
📉 Loan Balance
$249,104.998
What you still owe
✅ Equity %
40.7%
Ownership stake
📊 Equity Breakdown
💳 Your Borrowing Power
HELOC Available
$107,895.002
Based on 85% CLTV (Combined Loan-to-Value)
Interest-only payments during draw period
Cash-Out Refinance
$86,895.002
Based on 80% LTV (Loan-to-Value)
New mortgage replaces current loan
💡 Ways to Use Your Home Equity
✅ Smart Uses:
- • Home improvements (adds value)
- • Debt consolidation (lower rate)
- • Emergency fund (HELOC as backup)
- • Education expenses
- • Investment property down payment
⚠️ Avoid Using For:
- • Vacations or luxury items
- • Depreciating assets (cars, boats)
- • Gambling or speculation
- • Lifestyle inflation
- • Risky investments
🎯 Access Your Home Equity Today
Now that you know your equity, explore your options. Get quotes for HELOCs, home equity loans, or cash-out refinancing from top lenders.
Understanding Home Equity
What is Home Equity?
Home equity is the portion of your home that you truly own - the difference between your home's current market value and what you still owe on your mortgage. It's your stake in the property and grows in two ways:
1. Principal Paydown
Each mortgage payment reduces your loan balance, increasing your equity. Early payments are mostly interest, but over time more goes toward principal.
2. Home Appreciation
As your home's market value increases (typically 3-5% annually), your equity grows automatically. Home improvements can also boost value.
Ways to Access Your Home Equity
💳 HELOC
Home Equity Line of Credit - revolving credit line you can draw from as needed.
- ✓Flexible borrowing
- ✓Interest-only payments
- ✓Up to 85% CLTV
- ✗Variable rate risk
🏦 Home Equity Loan
Fixed-rate second mortgage with lump sum payout.
- ✓Fixed rate & payment
- ✓Predictable costs
- ✓Up to 85% CLTV
- ✗Less flexible
🔄 Cash-Out Refinance
Replace current mortgage with larger loan, pocket the difference.
- ✓One mortgage payment
- ✓Potentially lower rate
- ✓Up to 80% LTV
- ✗Higher closing costs
How Much Equity Do You Need?
| Equity % | What You Can Do | Typical Options |
|---|---|---|
| 0-20% | Limited options | Keep building equity, avoid PMI at 20% |
| 20-50% | Good borrowing power | HELOC, home equity loan, cash-out refi |
| 50-80% | Excellent position | All options, best rates, maximum flexibility |
| 80%+ | Paid off or nearly | Reverse mortgage (62+), sell, downsize |
Frequently Asked Questions
How do I know my current home value?
Use online estimators (Zillow, Redfin, Realtor.com), check recent sales of comparable homes in your area, or get a professional appraisal ($300-$500). For borrowing, lenders will require an appraisal.
What's the difference between LTV and CLTV?
LTV (Loan-to-Value) is your first mortgage balance divided by home value. CLTV (Combined Loan-to-Value) includes all liens (first mortgage + HELOC + second mortgage). Lenders use CLTV to determine how much you can borrow.
Can I borrow 100% of my equity?
No. Lenders typically limit borrowing to 80-85% CLTV to protect against market downturns. With 85% CLTV, you can borrow up to 85% of home value minus your current mortgage balance.
Is home equity the same as net worth?
No. Home equity is just one component of net worth. Net worth = all assets (home equity, savings, investments, retirement) minus all debts (mortgage, credit cards, loans). Home equity is often the largest asset for homeowners.
Should I use home equity to pay off debt?
It depends. If you have high-interest debt (credit cards at 20%+), consolidating with a HELOC (6-9%) can save thousands. However, you're converting unsecured debt to secured debt - if you can't pay, you could lose your home. Only do this if you're committed to not running up new debt.