Heloc Calculator Reveals Surprising Borrowing Power Secrets
Calculating Your Borrowing Power
To determine your borrowing power using a HELOC calculator, you'll need to input several key pieces of information:
- The current appraised value of your home
- The outstanding balance on your mortgage
- Your credit score
- The loan-to-value (LTV) ratio your lender is willing to offer
Most lenders allow you to borrow up to 85% of your home's value, minus the amount you owe on your mortgage2. For instance, if your home is valued at $400,000 and you owe $250,000 on your mortgage, you might qualify for a HELOC of up to $90,000.