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The amount of line of credit you can borrow
Use the calculator below to estimate the maximum home equity line of credit amount you may be able to borrow, based on the value of your home, your remaining mortgage balance, and the loan-to-value (LTV) ratio acceptable by the lender.
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Enter your values and click Calculate to see results.
You may borrow up to $0.
Your current loan-to-value ratio: 0%.
There are other factors that may affect the home equity line of credit amount you qualify for, such as your credit history. Applicants with a credit score below 630 may not qualify. Your other debts can also affect the amount you are eligible for. In general, lenders typically won't approve a loan for borrowers with a debt-to-income ratio of 43% or higher.
Mastering Your Home Equity with Atozee
The Atozee HELOC Calculator is designed to provide homeowners with a clear roadmap of their financial options. Whether you are looking to renovate your home, consolidate high-interest debt, or cover education costs, our tool simplifies the complex math behind revolving credit. By inputting your home value and loan details, you can instantly see your borrowing limit and project your future monthly payments — replacing financial uncertainty with data-driven confidence.
What is a HELOC and How Does it Work?
A Home Equity Line of Credit (HELOC) is a flexible, revolving credit line secured by the value of your home. Unlike a standard home equity loan, which provides a lump sum, a HELOC works more like a credit card: you borrow only what you need, when you need it, up to a specific limit.
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The Draw Period
Typically 5–10 Years
During this phase, you can withdraw funds as needed. Most lenders only require interest-only payments during this time, though you can choose to pay down the principal early to reduce future payments.
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The Repayment Period
Typically 10–20 Years
Once the draw period ends, you can no longer take out money. Your monthly payments will increase significantly because you must now pay back both the principal and interest over the remaining term.
Calculating Your Borrowing Power
Lenders don't just look at your home's value — they look at your Combined Loan-to-Value (CLTV) ratio. Most banks allow you to borrow up to 80% or 85% of your home's value, minus what you still owe on your primary mortgage.
The HELOC Formula
Line of Credit = (Home Value × LTV Percentage) − Mortgage Balance
Example Calculation
Home Value$500,000
LTV Limit (80%)$400,000
Current Mortgage Balance$250,000
✦ Your HELOC Limit$150,000
Costs and Fees to Watch For
While HELOCs often have lower interest rates than personal loans, they aren't free. Our calculator lets you factor in these common costs so there are no surprises.
Upfront Costs
Appraisal fees, title searches, and origination fees — typically 1–5% of the credit limit. Often negotiable.
Annual Fees
Many lenders charge a "membership" fee of $50–$100 per year just to keep the line of credit open and active.
Variable Rates
Most HELOCs have variable rates tied to the Prime Rate. Your payment could increase if market rates rise over time.
HELOC vs. Alternatives
Not sure if a HELOC is right for you? Compare your options side by side to find the financing solution that best fits your goals.
It is difficult but not impossible. While most lenders require a score of 660 to 700, some credit unions or specialized lenders may approve a HELOC with a score as low as 620. However, expect higher interest rates and a lower Loan-to-Value (LTV) limit. Improving your score by 30–50 points before applying can significantly expand your options.
Under current U.S. tax law, HELOC interest is only deductible if the funds are used to "buy, build, or substantially improve" the home that secures the loan. If you use the money to pay off credit cards or buy a car, the interest is generally not deductible. Always consult a qualified tax professional before making financial decisions based on tax treatment.
Because a HELOC is secured by your home, failing to make payments puts you at risk of foreclosure. If you find yourself struggling during the repayment period, contact your lender immediately to discuss a loan modification or alternative repayment plan. Early communication is key — lenders generally prefer to work out a solution rather than foreclose.
Yes, most HELOCs allow you to pay down the principal at any time during the draw period without penalty. However, some lenders charge an early closure fee if you close the account entirely within the first 2 to 3 years of opening it. Always review the fine print before signing.
Initially, your score may dip slightly due to a hard credit inquiry when you apply. Long-term, a HELOC can improve your score by increasing your available credit and diversifying your credit mix. However, carrying a balance near your limit (high utilization) can lower your score — aim to use no more than 30% of your available line.
A HELOC is a revolving line of credit with a variable rate, similar to a credit card — you borrow, repay, and borrow again during the draw period. A home equity loan is a fixed-rate installment loan where you receive a lump sum and pay it back in equal monthly amounts over a set term. If you prefer predictability, a home equity loan may suit you better. Use our Home Equity Loan Calculator to compare.
Ready to Explore All Your Home Equity Options?
Compare HELOC payments against a fixed home equity loan to find the right fit for your financial goals.
