Home equity loan calculator
A home equity loan is a fixed-rate lump sum. The payment is set at closing and never changes, so the term is the main decision.
What is the monthly payment on a $75,000 home equity loan?
A $75,000 home equity loan at a fixed 8.25% over 15 years costs $728/mo, with $55,969 in total interest. The payment is set at closing and never changes. Over 30 years the payment drops, but total interest more than doubles, to $127,842.
Not sure you need the full amount at once? A HELOC charges interest only on what you draw. Compare them.
Home equity loan payment
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How the payment is calculated
The payment covers principal and interest and stays the same for the whole term. Early payments are mostly interest; later ones mostly principal.
Choosing a term
A shorter term means a higher payment and much less interest. A longer term means a lower payment but far more interest, and you'll owe longer. If you choose a longer term for a lower required payment, paying extra when you can shortens it without committing to a higher payment.
Comparing with a HELOC
A home equity loan fits a known amount needed now. If you'll draw in stages, a HELOC usually costs less. HELOC vs. home equity loan · Payment tables by amount.
Questions people ask
How much can I borrow with a home equity loan?
A home equity loan usually lets you borrow your home's value times the lender's cap, often 80%–85%, minus your mortgage balance. Estimate it.
Can I pay off a home equity loan early?
Usually yes. Most home equity loans can be paid off early without penalty, but check the note for a prepayment clause before you do.
Payments for a specific amount?
Example comparison
On $75,000 at an example fixed 8.25%, a 10-year loan costs about $920 a month and $35,400 in interest; a 20-year loan costs about $639 a month and $78,400 in interest. The 20-year option frees up $281 a month but costs $43,000 more in interest. A middle path: take the 20-year loan for the lower required payment and pay $920 a month anyway, finishing in about 10 years. If money gets tight, you can drop back to the required payment.
Mistakes to avoid
- Choosing the longest term by default.
Also asked
Is the rate in the home equity loan calculator a real quote?
No. It's an example. Fixed home equity loan rates depend on your credit score, how much of your home's value you're borrowing against, the loan size and term. Enter the rate from your own quote for a real number.
Why is the APR on my home equity loan quote higher than the rate?
The APR includes certain fees, such as origination charges, spread over the loan term. Two loans with the same interest rate can have different APRs if their fees differ, so compare APRs when fees vary.
Should I choose 10, 15 or 20 years?
Pick the shortest term whose payment you could still make in a tight month. A 10-year loan saves the most interest; a 20-year loan gives breathing room. You can always prepay a longer loan, but you can't lower the required payment on a shorter one.
Can I get a home equity loan with no closing costs?
Yes, some lenders offer home equity loans with no closing costs, usually in exchange for a slightly higher rate or a fee if you pay the loan off early.
Is a home equity loan payment fixed for the whole term?
Yes, on a fixed-rate home equity loan, principal and interest never change.
Are home equity loan rates always fixed?
Almost always. The rate and payment stay the same for the full term, unlike a HELOC's variable rate.
How does a home equity loan payment compare with a HELOC?
A home equity loan payment includes principal from day one, so it's higher than a HELOC's interest-only minimum but pays the loan down on schedule.