Home Equity Calculator
See how much you might be able to borrow from your home. Just enter some basic information in our home equity loan calculator to find out.
How do we calculate this amount?
What is loan-to-value (LTV)?
What's the difference between a home equity loan and a line of credit?
What is a home equity loan and how does it work?
Basic uses for home equity loans
Debt consolidation and home improvements are the most common reasons homeowners borrow from their equity, says Greg McBride, CFA, chief financial analyst for Bankrate. There are other reasons borrowers may tap home equity, such as education costs, vacations or other big ticket purchases.
Under the Tax Cuts and Jobs Act of 2017, borrowers can deduct the interest paid on HELOCs and home equity loans if they use the funds to buy, build or improve the home that acts as collateral for the loan.
Home equity loan rates can vary depending on the lender and home equity product you choose. For example, home equity loan rates ranged from 5.1 percent to 5.89 percent in 2020, while HELOC rates ranged from 4.52 percent to 6.2 percent.
One drawback is that home equity loans and lines of credit have closing costs and fees similar to a standard mortgage. Closing costs vary but can run into the thousands of dollars based on the value of a property.