Loan and home equity details
Fees and proceeds
Optional affordability check
This is a simplified estimate. It does not model taxes, insurance, credit pricing adjustments, title exceptions, escrow rules, or prepayment penalties.
| Line item | Amount | What it means |
|---|
Payment-to-income and back-end DTI appear only when income is entered. Lenders can use different DTI definitions and may include taxes, insurance, HOA dues, minimum payments, reserves, and income adjustments.
Methodology notes
Payment
The calculator amortizes the amount financed over the selected term at the fixed annual rate. If fees are financed, they are added to the loan balance before calculating payment.
Equity
CLTV equals first mortgage balance plus the home equity loan balance divided by home value. Equity cushion is home value less those combined liens.
Horizon cost
The payoff horizon shows remaining balance and interest paid through the month you expect to sell, refinance, or pay off. It does not add any prepayment penalty unless you include it separately in fees.
This calculator is educational and is not a loan approval, appraisal, underwriting decision, legal advice, or tax advice. Interest deductibility depends on how funds are used and current tax rules. See full disclosure.
Home equity loan FAQ
What is a home equity loan?
A home equity loan is usually a closed-end installment loan secured by your home, often in second lien position behind an existing first mortgage.
What CLTV is too high?
Many lenders become stricter above 80% CLTV and may decline scenarios near or above 90%, especially with weaker credit, income, or property factors.
Can I pay it off early?
Often yes, but verify prepayment penalties, early closure fees, lien release timing, and whether payoff quotes include recording or processing charges.