What is a combined loan-to-value?

Combined loan-to-value, or CLTV, adds every loan on the home and divides by the value. With a $1,000,000 home, a $500,000 first mortgage and a $300,000 line, the CLTV is 80%. Most lenders cap it between 80% and 90%.

Is a HELOC rate fixed or variable?

Most HELOCs are variable and follow the prime rate plus a margin, so the payment can change. Some lenders let you lock part of the balance at a fixed rate. A home equity loan, by contrast, is a fixed lump sum at a fixed rate.

Why keep my first mortgage and add a HELOC?

If your first mortgage has a low rate, replacing it with a cash-out refinance at a higher rate would raise the cost of your whole balance. A HELOC only charges today's rate on the new money you borrow.

All calculators · Refinance and equity

Home Equity and HELOC Calculator

A home equity line of credit borrows against your equity while your first mortgage stays in place. See how large a line your equity may support, and what a draw costs during the draw period and after it converts to repayment.

Available line of credit

$330,000

85% of $1,000,000 is $850,000, less your $520,000 first mortgage.

First mortgage52%
Amount drawn10%
Unused line23%
Equity held back15%

Total home equity: $480,000 (48%)
Amount drawn: $100,000
Combined loan-to-value after draw: 62.0%
Interest-only payment (first 10 years): $708
Repayment payment (20 years): $868
Interest during the draw period: $85,000
Interest during repayment: $108,278

When the draw period ends, the payment on $100,000 rises from $708 to about $868 at today's rate, a jump of $159 a month.

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Estimates for illustration only, not a loan offer or a commitment to lend. Rates, taxes, insurance and program rules vary; our team will confirm exact figures for your situation.

How this calculator works.

Lenders cap the first mortgage and the equity line together at a combined loan-to-value, often 80% to 90% of the home's value. The line available is the home value times that combined limit, less what you owe on the first mortgage.

During the draw period most HELOCs require only interest on what you have borrowed, so the payment is the draw amount times the rate divided by 12. That payment rises or falls as the variable rate moves.

When the draw period ends, the balance is repaid with principal and interest over the repayment period. The calculator shows that payment at today's rate, which is usually the larger jump to plan for.

Available line = home value × max combined LTV − first mortgage balance.

Common questions.

Turn the estimateinto real numbers.

Answer a few questions and our team will price your scenario with current rates and the right program.

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