Home Equity Loan Calculator
Estimate a fixed second-lien payment and remaining equity.
What this calculator helps you estimate
A home equity loan generally provides a lump sum secured by a second lien, repaid over a fixed term with a separate monthly payment. This calculator estimates the loan amount available at an illustrative combined loan-to-value, the monthly payment, total interest, and the equity that would remain.
Unlike a line of credit, a home equity loan is usually funded once and amortized over a set term. Because the existing first mortgage generally stays in place, the new payment is typically in addition to the current mortgage payment.
Inputs
Home equity loan scenario
Varies by lender, investor, occupancy, and property type.
Results
Estimated fixed second-lien payment
Interpretation
A home equity loan is generally a separate second lien with its own payment, so the existing first-mortgage payment usually continues alongside it. Availability, maximum combined loan-to-value, rates, terms, and costs vary by lender, investor, property, occupancy, and borrower profile.
Understand the math
How this calculator works
A home equity loan delivers a fixed lump sum secured by a second lien, repaid on a set schedule — unlike a HELOC's revolving structure. This calculator estimates the loan amount a target combined loan-to-value can support, the fixed monthly payment, total interest, and the equity that remains.
Worked example
$450,000 home value, $250,000 first-mortgage balance, 80% maximum combined loan-to-value, 8% rate, 15-year term.
- Maximum total debt = $450,000 × 80% = $360,000
- Available second-lien loan = $360,000 − $250,000 = $110,000
- Monthly payment on $110,000 at 8%, 15 years ≈ $1,051.22
- Total interest over 15 years ≈ $1,051.22 × 180 − $110,000 ≈ $79,219
- Remaining equity = $450,000 − $250,000 − $110,000 = $90,000
Estimated new loan ≈ $110,000, payment ≈ $1,051.22/month, remaining equity ≈ $90,000.
How to read your results
Interpretation guidance
- This payment is in addition to your existing first-mortgage payment, since the first mortgage generally stays in place.
- A fixed rate and fixed term mean the payment won't change, unlike a variable-rate HELOC.
- Total interest paid rises with a longer term even if the monthly payment looks more manageable — compare terms side by side.
- Remaining equity after the new loan is what you'd keep if you sold immediately, before selling costs.
Deeper answers
More questions about this calculator
How is a home equity loan different from a HELOC?
A home equity loan generally provides a fixed lump sum repaid on a set schedule, while a HELOC generally provides a reusable line of credit with a variable rate. Availability and terms vary by lender and investor.
Does a home equity loan replace my first mortgage?
Generally no. A home equity loan is typically recorded as a separate second lien, so the existing first mortgage and its payment usually remain in place.
How much can I borrow?
Borrowing capacity generally depends on property value, existing liens, combined loan-to-value guidelines, credit, income, and reserves. Enter an illustrative combined loan-to-value to model a scenario.
Are home equity loan rates fixed?
Yes, typically — the rate and payment are set at closing and don't change for the life of the loan, unlike a HELOC's variable structure.
Results are estimates for educational purposes only and are not a commitment to lend, loan approval, or official Loan Estimate. Actual rates, payments, costs, taxes, insurance, mortgage insurance, eligibility, and loan terms may vary.
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Answers
Frequently asked questions
How is a home equity loan different from a HELOC?
A home equity loan generally provides a fixed lump sum repaid on a set schedule, while a HELOC generally provides a reusable line of credit with a variable rate and a draw period followed by a repayment period. Availability and terms vary by lender and investor. Results are estimates for educational purposes only and are not a commitment to lend.
Does a home equity loan replace my first mortgage?
Generally no. A home equity loan is typically recorded as a separate second lien, so the existing first mortgage and its payment usually remain in place. Results are estimates for educational purposes only and are not a commitment to lend.
How much can I borrow?
Borrowing capacity generally depends on the property value, existing liens, combined loan-to-value guidelines, credit, income, reserves, occupancy, and property type. There is no single universal maximum, so enter an illustrative combined loan-to-value to model a scenario. Results are estimates for educational purposes only and are not a commitment to lend.
Next step
Numbers are helpful. A personalized strategy is better.
Review your scenario with a Vabasso mortgage expert. No pressure, no obligation — just clear guidance for your next move.