HELOC Calculator
FAQ
Your questions answered.
How much can I borrow with a HELOC?
Your maximum HELOC is determined by your home's value and your existing mortgage balance. Most lenders allow total borrowing up to 80% of your home's appraised value. On a $1,000,000 home with a $400,000 mortgage, that is $800,000 minus $400,000 — a maximum HELOC of $400,000. Your credit score, income, and debt-to-income ratio also affect approval and rate.
What is the current HELOC rate?
As of February 27, 2026, the national average HELOC rate is 7.23% for well-qualified borrowers (780+ credit, CLTV under 70%), per Curinos. Bankrate's broader survey puts the national average at 7.31% for borrowers at 80% CLTV with a 700 credit score. Rates range from just under 6% to over 18% depending on borrower profile and lender. HELOCs are variable — the rate moves with the prime rate, currently 6.75%.
What is the monthly payment on a $200,000 HELOC?
During the draw period at 7.23%, the interest-only payment on a $200,000 draw is $1,205/month. When the repayment period begins — typically after 10 years — the payment increases to $1,578/month as principal repayment begins over a 20-year term. The total interest paid if you carry the full $200,000 for the entire draw and repayment period is $323,399.
Is HELOC interest tax deductible?
HELOC interest is deductible when the funds are used to buy, build, or substantially improve the home securing the loan, per current IRS guidelines. Using a HELOC for home renovations, additions, or repairs typically qualifies. Using it for debt consolidation, vacations, or other non-home expenses does not. Confirm deductibility with a tax advisor.
Can I use a HELOC if I have a low mortgage rate?
Yes — this is one of the most compelling reasons to choose a HELOC over a cash-out refinance. A HELOC leaves your existing mortgage untouched. If you are carrying a 3–5% primary mortgage, a HELOC lets you access equity at 7.23% on just the new borrowing, rather than refinancing your entire balance into a higher rate. See Hauser's cash-out refinance vs. HELOC comparison for the full numbers.
How to Use This Calculator
The calculator has two sections: Property & Mortgage and HELOC Terms.
Property & Mortgage
Home Value ($): Enter your home's current estimated market value. Use a recent appraisal or your Hauser home estimate as the starting point.
Mortgage Balance ($): The amount you currently owe on your primary mortgage, available on your most recent statement.
Max LTV (%): Choose 70%, 75%, 80%, 85%, or 90%. This controls how much of your home's value the calculator allows as total borrowing. 80% is the most common lender threshold. Lower LTV means more equity retained and typically better rates. Higher LTV unlocks more borrowing but increases your combined leverage.
HELOC Terms
HELOC Rate (%): Enter the rate you've been quoted. HELOCs are variable — the rate moves with the prime rate. The default reflects current market conditions.
Initial Draw ($): How much you plan to draw at the outset. This determines the interest-only payment shown for the draw period. You can draw up to your maximum available credit line.
Draw Period (Years): Choose 15, 20, or 25 years. During this period you pay interest only on the amount drawn (or a fully amortizing payment if you select Amortized).
Repayment Period (Years): Choose 15, 20, or 25 years. After the draw period ends, the outstanding balance converts to a fully amortizing loan over this term.
Draw Period Payments: Toggle between Interest Only and Amortized. Interest Only keeps draw period payments lower. Amortized builds equity during the draw period but costs more each month.
The calculator returns your Max HELOC Available, Draw Period monthly payment, Repayment Period monthly payment, Total Interest Over Full Term, and a Your Equity section showing your current and post-draw combined LTV.
How Your Borrowing Limit Is Calculated
Your maximum HELOC is determined by your home value, your existing mortgage balance, and the Max LTV you select.
(Home Value x Max LTV) minus Mortgage Balance = Max HELOC Available
On an $875,000 home with a $520,000 mortgage at 80% LTV, the maximum HELOC is $180,000 — ($875,000 x 0.80 = $700,000, minus $520,000). The calculator updates this in real time as you adjust any of the three inputs.
Draw Period vs. Repayment Period: Plan for the Jump
The most important thing to understand before drawing on a HELOC is what happens when the draw period ends. The calculator shows this clearly.
During the draw period, you pay interest only on your Initial Draw amount (unless you select Amortized). The payment is lower and manageable. During the repayment period, the outstanding balance becomes a fully amortizing loan — meaning principal plus interest — over the repayment term you selected.
The calculator highlights the percentage increase between the two payments. On a $100,000 draw at 8.75% with a 20-year repayment period, the draw period interest-only payment is approximately $729/month. The repayment period payment jumps to approximately $884/month — a 21% increase. Budget for that transition before you draw.
Understanding Combined LTV
The Your Equity section shows your combined loan-to-value (CLTV) after adding the HELOC draw to your existing mortgage. A CLTV above 80% means you have less than 20% equity remaining after the draw. Most lenders monitor this closely, and a high CLTV can affect your ability to refinance your primary mortgage in the future.
Use the Max LTV selector to see how different leverage thresholds affect both your available credit line and your remaining equity.
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