How much can I borrow?
Lenders cap your mortgage plus the new line at a share of your home's value, usually 80%–85%. What's left under that cap is your likely line.
How much can I borrow with a HELOC?
With a HELOC, most lenders let you borrow up to 80%–85% of your home's value minus your mortgage balance. A $650,000 home with a $310,000 mortgage can support a line of up to about $242,500 at 85% combined loan-to-value. Drawing $45,000 at a typical rate for 720–759 credit costs about $333/mo interest-only. On the 9,601 HELOCs Shawn Way's team funded from January 2023 to October 2026, the median line was $92,000 on a median home value of $500,000.
Your income also has to support the payment (most lenders want total debt payments under about 43% of gross income), and the home's value is confirmed by an automated valuation or an appraisal.
How much could you borrow?
Example numbers. Change them.You need more than this estimate allows. A cash-out refinance or a lender that goes above 85% may fit; we can check both.
How this estimate works
This example caps your mortgage plus the new line at 85% of home value. Payments use the midpoint of the displayed APR range and the smaller of your requested amount or estimated maximum line. Interest-only payments do not pay down the balance. HELOC rates can change; fees are not included in these payment estimates.
Email me these results
Preview only. Nothing was sent.
How the estimate is calculated
The calculator uses an 85% cap, common for primary homes. Some lenders allow 90% or more; second homes and rentals often cap at 70%–80%. Your income must also support the payment; that's checked separately.
Examples
| Home value | Mortgage | Line at 85% |
|---|---|---|
| $400,000 | $250,000 | $90,000 |
| $650,000 | $310,000 | $242,500 |
| $1,000,000 | $600,000 | $250,000 |
| $800,000 | $0 (paid off) | $680,000 |
Getting the home value right
Online estimates can miss by 5%–10% either way. Look at recent sales of similar homes nearby, and enter a conservative number. If you've remodeled recently, the lender may need a full appraisal to credit it. Valuations explained.
Next steps
Check that your credit and income fit, then compare offers. HELOC requirements · Get your HELOC rate.
Related question: How to calculate home equity
Questions people ask
Do I have to take the full HELOC line?
No. Open what you'll realistically use plus some room. You only pay interest on what you draw.
What if I need more than my estimated HELOC line?
Some lenders go above 85% for strong credit, or a cash-out refinance may reach further. Texas caps every home equity loan at 80%. Texas rules.
Which home value do lenders use for a HELOC?
HELOC lenders use your home's value today, from an automated estimate or an appraisal, not the price you paid. Online estimates can miss by 5%–10% either way, so enter a conservative number. How valuation works.
Example
A $650,000 home with $310,000 owed supports up to $242,500 at 85%. At 80%, it's $210,000. At 90%, $275,000. Which cap you get depends on credit, property type and lender.
Mistakes to avoid
- Entering a high online estimate as your home value.
- Forgetting a second mortgage or other lien.
- Assuming the maximum line is what you should borrow.
Also asked
Why is my HELOC offer lower than the calculator's estimate?
Lenders may use a lower cap than 85%, value the home lower than you entered, or reduce the line to keep your debt-to-income ratio in range. A lower credit score or a second home also lowers the cap.
Does the HELOC borrowing calculator check my income?
No. It estimates the maximum line from equity alone. Most lenders want total monthly debts, including a payment on the HELOC, under about 43% to 50% of gross income.
Can I borrow more than 85% of my home's value with a HELOC?
Some lenders go to 90% or even 95% combined loan-to-value for strong credit, at higher rates. Above that, options are limited to programs like home equity agreements.
Will a HELOC lender use the same home value I enter?
No. The lender gets its own value from an automated model or an appraisal. If it comes in lower, your line will be lower. If you're unsure, enter a value 5% below your estimate to see a conservative number.
What if I already have a second mortgage when estimating a HELOC?
Add its balance to your mortgage balance. The calculator subtracts all existing liens from the maximum.