Home Equity and HELOC Payment Calculator
Fifth Third is committed to helping you borrow responsibly. Use our calculator to estimate your monthly payments for a home equity line of credit (HELOC) or home equity loan.
Calculate a Home Equity Loan or HELOC Payment
A home equity loan and a home equity line of credit (HELOC) are ideal for borrowing money when you need it. Leveraging your home’s equity allows you flexibility in how you use the funds for anything from home remodeling to emergency expenses. Use our home equity loan and HELOC calculator below to estimate your monthly payments—and if you're still deciding which option is right for you, check out our comprehensive guide on home equity loans vs. a HELOC
What is a Home Equity Loan and HELOC?
A home equity loan and a HELOC both leverage your home’s equity in exchange for cash—however, they are very different:
- A Home Equity Loan is often referred to as “a second mortgage” and is taken out in one lump sum. You’ll repay the loan (plus interest) over a set term. The interest rate is typically fixed, which offers predictable monthly payments.
- A Home Equity Line of Credit (HELOC) is a line of credit you can draw funds from as needed, functioning similar to a credit card. You’ll have a draw period followed by a repayment period. The interest rate is typically variable, which means your monthly payment could go up or down based on market conditions.
Factors for Payment Calculation
When you’re exploring your home equity loan or HELOC options, consider the following:
- Loan Amount: How much you plan to borrow
- Interest Rate: Home equity loans typically offer fixed interest rates, whereas HELOCs often come with variable interest rates
- Loan Term: How long you’ll have to repay the loan
- HELOC Draw and Repayment Period: HELOCs usually include a draw period, when you can access funds, followed by a repayment period
- Loan-to-Value (LTV) Ratio: The percentage of your home’s value you’re borrowing
How to Calculate your Max Loan-To-Value Ratio
Financial experts recommend that you maintain at least 20% equity in your home after you take out a HELOC or home equity loan. Therefore, the amount you owe on your primary mortgage plus any additional loan amount shouldn’t exceed 80% of your home’s value.
To calculate your LTV, divide the amount of your existing loan balance by your home’s current value. For example, if your current mortgage balance is $200,000 and your home’s appraised value is $400,000, your LTV ratio is 50% ($200,000 / $400,000).
Additional Calculators
Compare monthly payment and rates by loan amount and term
Find out which loan saves you more
Determine the number of months necessary to repay a line of credit