# Home Equity Loan Calculator - Use Your Home to Take Out Cash

#### By Betsalel Cohen Apr 15, 2019

Get a Mortgage Quote
• Use Bills.com Home Equity Loan Calculator to see how much equity you have in your home. Also check your loan-to-value ratio (LTV).
• Check how much money you can borrow based on lenders LTV requirements, usually 80-85% maximum.
• Calculate your monthly payments for the HEL and your current mortgage.

## Home Equity Loan Calculator - 5 Steps to Getting a HEL

Home equity loans (HEL) are a great option if your home value is significantly more than your mortgage balance. You can use a HEL for many reasons, including debt consolidation, home improvements, or paying for college.

A combination of rising home values and paying off your mortgage greatly increases your current home equity position. Use Bills.com Home Equity Calculator to find out how much you can borrow and your projected monthly payments.

# Home Equity Loan Calculator - 5 Steps

1. Calculate Your Home Equity: You need to know your mortgage balance and home value.
2. Calculate the amount of mortgage you can take: Usually, lenders will go up to an 80-85% LTV.
3. Calculate your monthly HEL payment: You need to estimate today's mortgage rates and decide on the loan repayment period.
4. Calculate your current monthly payment: Add in your current interest rate and amount of time left to pay. (This payment doesn't include your property taxes and insurance payments).
5. Find out your total payments and LTV.
1
How Much Equity Do I Have In My Home?
Your home equity depends on the value of your home and your mortgage balance. If you have more than one mortgage, then use the total amount for your “Mortgage Balance.” The result box shows both your Loan to Value ratio (LTV) and the total amount of equity, in dollars, you have based on current values.
/
=
LTV
(Loan to Value Ratio)
My Equity is Now:
2
How Much Cash Can I Take Out?
After completing step one you have a good idea of how much equity you have in your home. However, the amount of cash you can take out of your home depends on lenders underwriting rules. In general, lenders offer up a LTV up to 80%, although some lenders do offer higher ratios.
Maximum Cash Available Is:
3
Calculate Your Home Equity Loan Monthly Payment?
Figure Out How Much Your Payment will be based on current mortgage rates, the length of the loan, and the amount of the Home Equity Loan
Home Equity Loan Monthly Payment:
4
How Much is My Current Monthly Mortgage Payment?
Calculate Your Current Mortgage Payment based on the current balance, number of years left to pay, and your current interest rate. (This is for principal and interest only and doesn't include your property taxes, property insurance and if applicable mortgage insurance costs).
Existing Mortgage Payment Is:
5
Home Equity Loan - Review of Total LTV and Payments
Review your HEL and Current Mortgage based on LTV and Monthly Payments.
Home Value:
Mortgage
Amount
Monthly Payment
LTV
Current
Home Equity
Total-Mortgage
Make sure the amount doesn't exceed maximum amount available
Get a Home Equity Loan Quote
Home Equity Loans: People also ask
What Kinds of Home Equity Loans are Available?

There are three types of mortgage loans that you can use to tap into your home equity.

Cash out Mortgage: If you have a mortgage and want to refinance into a lower rate, or extend the payment period and lower your monthly payments and also take out additional money, then a cash-out mortgage is a great option. One popular reason to take a cash-out mortgage is consolidate your mortgage and credit card debt into one monthly payment.

Home Equity Loan: If you built up equity through paying off your mortgage or rising home prices, you can take out a mortgage (or second mortgage if you already have one). A HEL allows you to tap into you home for many reasons including debt consolidation and home improvements.

Home Equity Line of Credit (HELOC): Do you need money over an extended period of time? Instead of taking a traditional installment payment mortgage, consider an HELOC, which is a revolving line of credit. Similar to a credit card, it allows you to borrow money over time, pay it back, and take out up to your line of credit. A HELOC has variable payments, so you need to budget carefully.

Check out Bills.com Home Equity Loan Option Calculator.

What is a Home Equity Loan?

A home equity loan is a special type of mortgage, which allows you to tap into your home’s value to take out cash. There are many reasons to take out a home equity loan including debt consolidation, home improvements, or paying for college.

Mortgage
Debt Consolidation
Debt