This calculator provides estimates for educational purposes only. It is not affiliated with any bank, lender, or financial institution. Results are not a loan offer or guarantee of terms. Consult a licensed mortgage professional for advice specific to your situation.
How Much Can You Borrow With a HELOC?
Your HELOC borrowing limit depends on your home value, mortgage balance, and the lender's combined loan-to-value (CLTV) limit. Use this calculator to see your maximum borrowing power.
Your Home Equity Breakdown
Step-by-Step Calculation
- 1.Your home is worth $400,000
- 2.You owe $250,000 on your mortgage
- 3.That gives you $150,000 in equity (37.5% of home value)
- 4.At 80% CLTV, your maximum borrowing is $400,000 x 80% - $250,000 = $70,000
- 5.Your combined LTV with HELOC: 80.0% (current mortgage LTV: 62.5%)
LTV Limit Comparison
| CLTV Limit | Max HELOC | Typical Lender | Trade-off |
|---|---|---|---|
| 80% | $70,000 | Most banks | Lowest rate, most restrictive |
| 85% | $90,000 | Credit unions | Moderate rate, more borrowing |
| 90% | $110,000 | Online lenders | Higher rate, maximum access |
What Affects Your HELOC Limit
Beyond the LTV calculation, several factors can reduce the amount a lender is willing to offer.
Credit Score
Minimum 620 for most lenders. Higher scores (740+) get the highest credit limits and best rates. Below 680 may reduce your approved amount.
Debt-to-Income Ratio
Your total monthly debt payments (including the new HELOC) divided by gross income. Most lenders want this below 43%. Lower DTI means higher approval amounts.
Income and Employment
Stable, verifiable income from employment, self-employment, or retirement. Lenders need confidence you can repay. Two years of consistent income is typical.
Property Type
Primary residences get the highest LTV limits. Second homes may be capped at 75% CLTV. Investment properties may be limited to 70% or not eligible at all.
How Lenders Determine Home Value
| Method | Cost | Accuracy | When Used |
|---|---|---|---|
| Full Appraisal | $300 to $600 | Highest | Most common for larger HELOCs |
| Desktop Appraisal | $100 to $200 | Good | Lower-risk applications |
| AVM (Automated) | Free | Moderate | Pre-qualification, small credit lines |
| BPO (Broker Price Opinion) | $75 to $150 | Good | Some credit unions |
If the appraisal comes in lower than expected, your borrowing limit will decrease. You can request a reconsideration of value with comparable sales data, or try a different lender that may use a different valuation method.
Ready to Calculate Your Payment?
Now that you know how much you can borrow, see what your monthly payments would look like during both the draw and repayment periods.
Use the HELOC Payment Calculator