Home Equity Calculator
If you already own a home our home equity calculator will show
the amount of money you can borrow using the equity in your house
as collateral. You can also compare a home equity loan against a
home equity line of credit.
- Enter ballpark values by clicking on and dragging the diamond-shaped
sliders left or right. Enter exact numbers by clicking on the
number in the box on the right and type your number (no commas).
- The results of your calculations show in the box in the middle
of the calculator.
Property Value
Enter the estimated or actual appraised value of your home.
Mortgage Value
You should enter the amount you still owe on your mortgage or, if
you have multiple mortgages on your home, you can type in X+Y, hit
the Enter key, and the calculator will enter total amount for you.
Percent of Equity to Borrow
Now that you know how much equity is in your home, the difference
between the value of your home and the amount of the outstanding
mortgage(s) you hold, you can decide what percentage of it you would
like to borrow. Some financial institutions may allow a loan-to-value
(LTV) ratio of less than 100% (see the results box).
Amount to Borrow
If you have a specific amount that you would like to borrow you
can enter it here. The amount you enter here affects the Percent
of Equity to Borrow values, which can never be more than 100%.
Results
Your results are based on the values you entered above and show
your total debt and your LTV (loan-to-value) ratio.
Home Equity Loan Typically, home
equity loans have a fixed rate, a fixed monthly payment and a set
term (usually longer than 5 years). Home equity loans are good if
you want a set amount of money and don't need to periodically withdraw
funds.
Annual Loan Rate
This is the annual percentage rate the financial institution will
charge you for the home equity loan.
Payoff Period
Enter the number of years that you will agree to pay back the loan.
Monthly Payment
If you choose a home equity loan you will have a fixed monthly payment
based on the amount that you have borrowed and your interest rate.
Total Interest Paid
You will be able to see the total amount of interest that you will
pay over the life of the loan.
Home Equity Line of Credit A home
equity line of credit is like a credit card because you can periodically
withdraw funds. Your monthly payments and rates will change, depending
on how much you’ve borrowed. However, for purposes of comparison
to the home equity loan, it is assumed you get all your loan money
up front and that you have a fixed payoff period.
Initial Loan Rate
Enter the interest rate at the start of the loan. The annual percentage
rate the financial institution charges for lending you their money
will fluctuate for home equity lines of credit.
Payoff Period
There is no set pay off period for a home equity line of credit
because it is a revolving account that is open-ended. You are required
to repay your loan based on the amount of money you have borrowed.
Expected Change
Since the interest rate will fluctuate, you can estimate if the
rate will go up, stay the same or go down During the time period
that you are borrowing and repaying on the loan.
Initial Monthly Payment
This is the amount of money you have to repay on your first payment
to the financial institution. It is based on the assumption that
you initially received the same amount of loan as in the home equity
loan example. It is assumed you received all the loan money up front.
Total Interest Paid
These results show an estimate of the total interest that you will
pay for the loan. This figure is based on the initial rate only,
since it is impossible to know all the future ups and downs in the
rate over the life of your loan.
Graph You get a clear and easy to
understand comparison of the two kinds of loans with our graph.
The home equity loan results are shown in blue and the home equity
line of credit results are shown in red. When you move your cursor
over the graph area, a flyover shows you figures that compare the
two loans at that particular point in the loan term.
Click
Here to open the Home Equity Calculator
|
