Home Equity Available Calculator — United States

Most US lenders let you borrow up to 80-85% of your home's value across all loans combined (your combined loan-to-value, or CLTV), minus your current mortgage. Some lenders go to 90% for borrowers with strong credit. On a $500,000 home with a $250,000 mortgage at 85% CLTV, you could access up to $175,000.

CLTV is the total of all loans secured by your home divided by its value. If your first mortgage is $250,000 and you add a $100,000 HELOC on a $500,000 home, your CLTV is 70%. Lenders set a maximum CLTV (commonly 80-85%) that limits how much equity you can tap.

A HELOC is a revolving line of credit with a variable rate — you borrow and repay during a draw period and pay interest only on what you use. A home equity loan gives you a lump sum at a fixed rate with fixed monthly payments. Both are secured by your home and count toward your CLTV limit.

Under current federal law, interest on a home equity loan or HELOC is deductible only if the funds are used to buy, build, or substantially improve the home securing the loan, and only if you itemize. Interest on equity borrowed for other purposes (debt consolidation, tuition) is generally not deductible.