Home Equity Loan Calculator
See How Much Equity You Can Access!
Home Equity Loan Calculator Features
What Is The Home Equity Loan Calculator?
Home Equity Loan Calculator Explained
Home Equity Loan Calculator is a free tool that allows you to quickly and easily calculate your available home equity, for getting a home equity loan or second mortgage. With the Home Equity Loan Calculator, you can also calculate home equity loan rates and home equity loan monthly payments. A home equity loan calculator is the first step home equity lenders use to determine if you qualify for a home equity loan.
How To Calculate Home Equity
How The Home Equity Calculator Works
The home equity calculator will calculate equity, in the form of money, available in your home. Most home equity lenders will offer a home equity loan up to 90% of your home value.
To calculate home equity available for a home equity loan, first multiple the property value by 0.90, and subtract the total mortgage balance(s) you have including first mortgage, second mortgage and any home equity line of credit that may be registered on the title of property.
Example Home Equity Calculation
Example Of How To Calculate Home Equity
Example 1: For a property value of $500,000, with a first mortgage of $300,000, first you must calculate $500,000 x 0.90% (maximum loan to value for a home equity loan) = $450,000 (total 90% Loan to value). Then calculate the difference between $450,000 and $300,000, and the home equity available is $150,000.
Example 2: For a property value of $500,000, and a first mortgage of $300,000, with a $50,000 HELOC (Home equity line of credit), first calculate $500,000 x 0.90% = $450,000. Then calculate the difference between $450,000 and $350,000, and the equity available is $100,000.
What Are Home Equity Loan Rates?
Home Equity Loan Rates Calculator
Home equity loan rates are based on the equity available in the home, and the loan amount the home owner wants to take out. Home equity loan rates can start from 3.49%, when home owners take out a home equity line of credit.
Traditionally, home equity loan rates start at 5.49% when there is approximately 35% equity available (65% loan to value). Home equity loan rates can range from 5.49% and up to 12.99%, depending on the loan to value.
How To Calculate Home Equity Loan Payment
Home Equity Payment Calculator
Most home equity loan payments are based on interest only, meaning there is no amortization. The total monthly payment made for a home equity loan is based on the interest only.
To calculate home equity loan payments, first you will need to calculate home equity available. Then multiply the home equity available by the interest rate (use 7.99% as the average interest rate for a home equity loan), and divide that number by 12, to get the monthly payment for a home equity loan.
Example Home Equity Calculation
Sample Home Equity Payment Calculator
For a property valued at $500,000, with a first mortgage of $300,000, first multiple $500,000 x 0.90% = $450,000. Then calculate the difference between the total equity available and the total mortgage(s) registered. In this case, you will calculate $450,000 – $300,000 = $150,000.
For a home equity loan of $150,000, with an interest rate of 7.99%, a 1 year term, no amortization, calculate $150,000 x 0.70% = $11,985. Then divided $11,985 by the number of months in the one year term (12). $11,985 / 12 = $998.75 per month.