A home equity loan is a fixed second mortgage against your equity. See how much you can borrow and the monthly payment on what you take.
A home equity loan is a fixed-rate second mortgage that lets you borrow against the equity in your home in one lump sum. This calculator shows your available equity, the most you can borrow at a typical 85% limit, and the monthly payment.
Your equity is the home's value minus what you still owe. Most lenders let your first mortgage plus the new loan reach about 85% of the value combined, so the amount you can borrow is 85% of the value minus your current balance. Borrowing beyond that limit is unlikely to be approved.
A home equity loan gives a fixed amount at a fixed rate, repaid on a set schedule, which suits a known one-time cost like a renovation. A home equity line of credit (HELOC) instead works like a credit card against your equity, with a variable rate and flexible draws. Both are secured by your home, so missed payments put the property at risk.
Usually up to about 85% of the value minus your current mortgage balance, though limits vary by lender and credit.
No. A home equity loan is a fixed lump sum at a fixed rate; a HELOC is a revolving, usually variable-rate line you draw from as needed.
Because the loan is secured by your home, defaulting can lead to foreclosure. Borrow only what you can comfortably repay.
See the exact formula and a worked example on our methodology page.