See how large a home equity line you could open, and what the interest-only and repayment payments look like.
Available credit line
$98,000
Up to 85% combined LTV.
During the draw period.
Over 20 years.
Based on $480,000 of value, a $310,000 mortgage and an 85% combined loan-to-value cap, your maximum HELOC is roughly $98,000. Drawing $50,000 would cost about $354 a month in interest-only payments during the draw period, and around $434 a month once repayment begins.
During the draw period (often 10 years), many HELOCs let you pay interest only — here about $354 a month. That's affordable, but it doesn't reduce the balance. When the repayment period starts, the payment jumps to roughly $434 to pay off the $50,000 over 20 years. Plan for that jump, sometimes called the 'payment shock'.
Most HELOCs have variable rates tied to the prime rate, so your payment can rise if rates increase. At 8.50%, drawing $50,000 pushes your combined loan-to-value to 75%. Because your home secures the line, missing payments risks foreclosure — borrow conservatively and keep the payment comfortable even if rates climb.
A HELOC draws on your home equity. Confirm how much you have and how borrowing affects your loan-to-value before opening a line.
Home equity calculatorWorked scenarios with the full analysis, so you can see how the numbers move before entering your own.
A homeowner tapping equity for a renovation, showing interest-only and repayment payments.
Available credit line
$98,000
Based on $480,000 of value, a $310,000 mortgage and an 85% combined loan-to-value cap, your maximum HELOC is roughly $98,000. Drawing $50,000 would cost about $354 a month in interest-only payments during the draw period, and around $434 a month once repayment begins.
During the draw period (often 10 years), many HELOCs let you pay interest only — here about $354 a month. That's affordable, but it doesn't reduce the balance. When the repayment period starts, the payment jumps to roughly $434 to pay off the $50,000 over 20 years. Plan for that jump, sometimes called the 'payment shock'.
Most HELOCs have variable rates tied to the prime rate, so your payment can rise if rates increase. At 8.50%, drawing $50,000 pushes your combined loan-to-value to 75%. Because your home secures the line, missing payments risks foreclosure — borrow conservatively and keep the payment comfortable even if rates climb.
Drawing the full available amount, pushing combined loan-to-value to the lender's cap.
Available credit line
$98,000
Based on $480,000 of value, a $310,000 mortgage and an 85% combined loan-to-value cap, your maximum HELOC is roughly $98,000. Drawing $98,000 would cost about $694 a month in interest-only payments during the draw period, and around $850 a month once repayment begins.
During the draw period (often 10 years), many HELOCs let you pay interest only — here about $694 a month. That's affordable, but it doesn't reduce the balance. When the repayment period starts, the payment jumps to roughly $850 to pay off the $98,000 over 20 years. Plan for that jump, sometimes called the 'payment shock'.
Most HELOCs have variable rates tied to the prime rate, so your payment can rise if rates increase. At 8.50%, drawing $98,000 pushes your combined loan-to-value to 85%. Because your home secures the line, missing payments risks foreclosure — borrow conservatively and keep the payment comfortable even if rates climb.
A modest draw to consolidate higher-interest debt at a lower secured rate.
Available credit line
$100,000
Based on $400,000 of value, a $220,000 mortgage and an 80% combined loan-to-value cap, your maximum HELOC is roughly $100,000. Drawing $25,000 would cost about $167 a month in interest-only payments during the draw period, and around $239 a month once repayment begins.
During the draw period (often 10 years), many HELOCs let you pay interest only — here about $167 a month. That's affordable, but it doesn't reduce the balance. When the repayment period starts, the payment jumps to roughly $239 to pay off the $25,000 over 15 years. Plan for that jump, sometimes called the 'payment shock'.
Most HELOCs have variable rates tied to the prime rate, so your payment can rise if rates increase. At 8%, drawing $25,000 pushes your combined loan-to-value to 61%. Because your home secures the line, missing payments risks foreclosure — borrow conservatively and keep the payment comfortable even if rates climb.
An owner with lots of equity accessing a large line of credit.
Available credit line
$360,000
Based on $600,000 of value, a $150,000 mortgage and an 85% combined loan-to-value cap, your maximum HELOC is roughly $360,000. Drawing $150,000 would cost about $1,031 a month in interest-only payments during the draw period, and around $1,278 a month once repayment begins.
During the draw period (often 10 years), many HELOCs let you pay interest only — here about $1,031 a month. That's affordable, but it doesn't reduce the balance. When the repayment period starts, the payment jumps to roughly $1,278 to pay off the $150,000 over 20 years. Plan for that jump, sometimes called the 'payment shock'.
Most HELOCs have variable rates tied to the prime rate, so your payment can rise if rates increase. At 8.25%, drawing $150,000 pushes your combined loan-to-value to 50%. Because your home secures the line, missing payments risks foreclosure — borrow conservatively and keep the payment comfortable even if rates climb.
A home equity line of credit (HELOC) is a revolving credit line secured by your home, much like a credit card but with your house as collateral and a much lower rate. You're approved for a maximum based on your equity — typically up to 80–90% combined loan-to-value — and you can draw from it as needed during the 'draw period', often 10 years.
During the draw period, many HELOCs require only interest payments, which keeps the cost low but doesn't reduce the balance. After the draw period ends, the line enters the 'repayment period' (often 20 years) where you pay principal and interest — and the payment can jump substantially. HELOC rates are usually variable, tied to the prime rate.
A HELOC's low, home-secured rate makes it attractive for high-value uses like renovations that add value, or consolidating high-interest debt. But two features demand caution. First, the payment shock: interest-only payments during the draw period can lull you into borrowing more than you can comfortably repay when principal payments kick in. Second, the variable rate means your payment can climb if interest rates rise.
Most importantly, your home is the collateral. Unlike credit card debt, defaulting on a HELOC can lead to foreclosure. That makes a HELOC a poor choice for discretionary spending or covering a budget shortfall — the stakes are your home. Used deliberately for value-adding purposes, with a clear repayment plan and a comfortable payment even at higher rates, it can be a powerful tool.
Your home secures a HELOC, so defaulting risks foreclosure. Reserve it for high-value uses, not vacations or routine costs.
Interest-only draw payments jump when principal repayment begins. Plan for the higher payment before borrowing.
Most HELOCs have variable rates that can rise. Make sure the payment stays affordable even if rates climb.
Borrowing to the full CLTV cap leaves no cushion if your home's value dips. Borrow conservatively.
Consolidating cards into a HELOC only helps if you stop charging. Otherwise you add home-secured debt on top.
Lenders typically allow a combined loan-to-value of 80–90%. On a $480,000 home with a $310,000 mortgage at 85% CLTV, your maximum line is about $98,000. Approval also depends on your income, credit score and debt-to-income ratio. Enter your numbers above for an estimate of your available line.
It depends on the phase. During the draw period, many HELOCs require interest-only payments — on a $50,000 balance at 8.5% that's about $354 a month. When the repayment period begins, you pay principal and interest, which raises the payment substantially, to around $434 a month over 20 years in that example.
A home equity loan is a lump sum at a fixed rate, repaid in equal payments — good for a one-time expense. A HELOC is a revolving line you draw from as needed, usually at a variable rate, with a draw period and then a repayment period — good for ongoing or uncertain costs. HELOCs offer flexibility; home equity loans offer predictability.
It can be, for high-value uses like value-adding renovations or consolidating high-interest debt, since the rate is low and secured. But it's risky for discretionary spending: your home is collateral, the rate is usually variable, and interest-only draw payments can mask how much you owe. Use it deliberately with a clear repayment plan.
It's the jump in payment when a HELOC moves from the interest-only draw period to the principal-and-interest repayment period. A payment that was, say, $350 interest-only can rise to $500+ when you start repaying principal — plus it can climb further if the variable rate rises. Planning for this jump is essential before drawing on a HELOC.
The next calculations that usually follow this one.
See your home equity, your loan-to-value, and roughly how much you could borrow against it.
See principal, interest, taxes, insurance and PMI — then what the loan really costs over 30 years.
A lower rate is not automatically a win. This shows what restarting the clock costs.
Enter your balances, get a payoff date — and see exactly what the easier order costs you.
See your monthly payment, total interest and the real cost of a personal loan after origination fees.
Guides that explain the decisions behind these numbers.
How mortgage rates are determined, what moves them, and the six factors that decide whether you get the advertised rate or half a point above it.
Updated January 15, 2026
Compare debt payoff methods, understand when consolidation helps, and see why payment size matters far more than payoff order.
Updated January 15, 2026
New tools, guides and the occasional thing that will genuinely save you money. No spam, unsubscribe anytime.
Developer note: this form has no backend. Connect an email provider and add a privacy policy before collecting real addresses.