US HELOC Calculator (Home Equity Line of Credit & Payment Shock)
Determine your maximum borrowing power up to 85% CLTV, interest-only draw payments, and repayment period payment shock.
Determine your maximum borrowing power up to 85% CLTV, interest-only draw payments, and repayment period payment shock.
Determine your maximum borrowing power up to 85% CLTV, interest-only draw payments, and repayment period payment shock. Calculate exact, penny-accurate projections compliant with 2026 IRS • St. Louis FED (FRED) standards using Calconova's deterministic IEEE-754 (Decimal.js) calculation engine with instant breakdowns.
Home Equity: $220,000 | Remaining Equity after draw: $145,000 (29%)
\text{Credit Limit} = (\text{Home Value} \times \text{CLTV}\%) - \text{Balance}_{1st\,Mortgage}Calculates the maximum borrowing capacity while ensuring total combined mortgage liens remain under the lender CLTV risk ceiling.
All calculations, amortizations, and scenario projections displayed on this page are strictly for informational and educational purposes. Nothing herein constitutes investment, financial, tax, underwriting, or legal advice. Actual interest rates, closing costs, lender fees, and statutory criteria may vary. Calconova explicitly disclaims all liability for any financial decisions or actions taken based upon these calculations. Users are strongly advised to consult a certified financial planner, CPA, or licensed lending officer prior to executing financial commitments.
A Home Equity Line of Credit (HELOC) is a revolving credit line secured by the equity in your home. Lenders typically allow a maximum Combined Loan-to-Value (CLTV) of 80% to 85%. Your limit equals: (Appraised Home Value × Max CLTV%) minus your existing first mortgage balance.
During the initial 10-year Draw Period, borrowers are only required to make interest-only payments. Once the draw period ends, the line transitions into a 20-year Repayment Period where borrowers must pay full principal and interest. This causes monthly payments to suddenly surge by 100% to 200%, catching unprepared homeowners off guard.
Most HELOCs carry variable interest rates pegged to the Wall Street Journal Prime Rate plus a bank margin (e.g. Prime 8.00% + 0.50% = 8.50%). If the Federal Reserve raises interest rates, your monthly payment increases automatically.
Under current IRS regulations, HELOC interest is tax-deductible ONLY if the borrowed funds are used to 'buy, build, or substantially improve' the home that secures the loan. If the funds are used for personal debt consolidation, tuition, or vacations, the interest cannot be deducted on federal income taxes.
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