Mortgage MindscapeSmart Financial Calculators

Home Equity Calculator

Calculate your home equity, borrowing capacity, and see how your equity will grow over time. Check if you're eligible to remove PMI.

Equity Breakdown

See how equity was built

Borrowing Capacity

HELOC, loan, cash-out refi

Future Projections

10-year equity growth

PMI Removal

Check eligibility

Home Details
Enter your current home information
3 years, 0 months
Your Home Equity
37.8% of home value
PMI Eligible
$170,000
Current Home Value$450,000
Mortgage Balance$280,000
Loan-to-Value (LTV)62.2%

37.8% Equity

Equity Breakdown
How your equity was built
Down Payment$80,000
Principal Paid$40,000
Home Appreciation$50,000
Borrowing Capacity
How much you can borrow against your equity

HELOC Credit Limit (85% LTV)

$102,500

A HELOC (Home Equity Line of Credit) works like a credit card secured by your home. You can borrow up to your credit limit and only pay interest on what you use.

Future Equity Projection
Estimated equity growth over the next 10 years

Ways to Use Your Home Equity

Home Improvements

Use equity to fund renovations that increase your home's value. Kitchen and bathroom remodels, additions, and energy-efficient upgrades often provide good returns on investment.

Debt Consolidation

Pay off high-interest credit cards and loans with a lower-rate home equity loan or HELOC. This can save thousands in interest and simplify your finances with one payment.

Education Expenses

Fund college tuition or other educational expenses. Home equity loans often have lower rates than student loans, and the interest may be tax-deductible if used for home improvements.

Emergency Fund

A HELOC can serve as an emergency fund backup. You only pay interest on what you use, and it's available when you need it. However, don't rely solely on this for emergencies.

Important Considerations

⚠️ Your home is collateral: Failure to repay can result in foreclosure

⚠️ Closing costs: HELOCs and home equity loans have fees (typically 2-5%)

⚠️ Variable rates: HELOC rates can increase, raising your payments

⚠️ Reduced equity: Borrowing reduces the equity you've built

✓ Tax benefits: Interest may be tax-deductible if used for home improvements

✓ Lower rates: Usually lower than credit cards or personal loans

Compare Home Equity Lenders

Get competitive rates on HELOCs and home equity loans

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Credible
Compare rates from multiple lenders

Frequently Asked Questions