Home Equity Line of Credit (HELOC) Calculator
Calculate HELOC payments, compare to home equity loans and cash-out refinance. Understand draw period, repayment terms, variable rate risks, and CLTV limits.
Home & Mortgage Details
HELOC Parameters
Typically 5-10 years. Borrow as needed, pay interest only.
Typically 15-20 years. Principal + interest payments required.
Equity Analysis
Current Equity:$150000.00
Combined LTV:75.0% (within limit)
Max HELOC Available:$127500.00
Available Equity:$33750.00
Draw Period (Interest-Only)
Draw Period:10 years
Interest-Only Payment:$354.17/mo
Rate Range:6.50% - 11.50%
Payment Range:$270.83 - $479.17/mo
During draw period, pay only interest on borrowed amount. No principal payment required.
Repayment Period (Principal + Interest)
Repayment Period:20 years
Amortizing Payment:$433.91/mo
Full balance amortized over repayment period. Payment jumps significantly from draw period.
Total Cost Analysis
Draw Period Interest:$21250.00
Repay Period Interest:$54138.79
Total Interest:$75388.79
Total Cost:$125388.79
Alternative: Home Equity Loan
Rate:10.00% fixed
Monthly Payment:$537.30
Total Interest:$46714.46
Lump-sum, fixed rate, fixed term. Higher rate but predictable payments. Best for one-time expenses.
Alternative: Cash-Out Refinance
New Loan Amount:$300000
New Monthly Payment:$2413.87
Current Mortgage:$2013.07/mo
Replaces existing mortgage. Extends term to 30 years. Lower rate than HELOC but longer commitment.
HELOC vs Alternatives
- HELOC Pros: Flexibility - borrow as needed, pay interest only during draw. Lower initial rate.
- HELOC Cons: Variable rate risk (payments can rise). Payment shock at repayment. Temptation to overborrow.
- Home Equity Loan: Fixed rate, predictable payments. Best for one-time large expense (renovation, medical).
- Cash-Out Refi: One loan, lower rate than HELOC. Extends mortgage term. Higher closing costs.
- Rate Risk: HELOC tied to prime rate. If prime rises 3%, your payment rises significantly.
- Best Use: Ongoing projects, emergency fund backup, debt consolidation with payoff plan.
- Tax Deduction: Interest deductible if funds used to buy, build, or improve home (TCJA 2017).