The Equity in Your Home Calculator

Calculate how much home equity you could borrow against.

Check RatesView Our HELOCs

How to Calculate Your Home Equity

  1. Enter Your Home's Value - Input the current market value of your home.
  2. Enter the Mortgage Balance - Input the remaining balance on your mortgage.
  3. Second Mortgage Balance - If you have a second mortgage, enter the amount.


Pros and Cons of a HELOC

Like any financial solution, a HELOC has its advantages and disadvantages, depending on your situation. 

Pros

  1. Flexibility - Borrow only what you need when you need it and repay it at your own pace.
  2. Lower Interest Rates - HELOCs typically have lower interest rates compared to credit cards and personal loans because they are secured by your home.
  3. Interest-Only Payments - During the draw period, you might be allowed to make interest-only payments, reducing your monthly obligations.
  4. Tax Benefits - Interest paid on a HELOC may be tax-deductible if the funds are used for home improvements.

Cons

  1. Variable Interest Rates - Many HELOCs have variable interest rates, which can increase over time, making your payments higher.
  2. Risk of Foreclosure - Since your home secures the HELOC, failing to repay can result in foreclosure.
  3. Fees and Costs - There may be upfront costs, annual fees, or early termination fees associated with a HELOC.
  4. Temptation to Overspend - Easy access to funds can lead to unnecessary spending and increased debt.