Most lenders cap at 80%. Some go to 85–90% for 740+ credit score. VA: up to 100%.
Loan Product
🔄 HELOC Variable rate, revolving
🏦 HE Loan Fixed rate, lump sum
%
Prime rate ~8.5% (2026)
$
Cannot exceed limit above
Results Summary
Total Equity
$170,000
37.8% of home value
Max Borrow
$80,000
at your CLTV limit
LTV Ratio
62.2%
after borrow: —
Monthly Payment
—
20-yr HELOC
Total Interest
—
over full term
Equity Status
Strong
Great position
HELOC vs Home Equity Loan
Feature
HELOC
HE Loan
Payment Scenarios
HELOC scenarios at 8.50% / 20 yr
Borrow Amount
Monthly Pmt
Total Interest
Total Cost
Appreciation Simulator
⚠️ Home equity loans and HELOCs are secured by your home. Defaulting can result in foreclosure. Rates shown are illustrative. Consult a licensed mortgage advisor before borrowing.
Frequently Asked Questions
How is home equity calculated?
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Home equity = Current Market Value − Remaining Mortgage Balance. If your home is worth $450,000 and you owe $280,000, you have $170,000 in equity (37.8%). Equity grows as you pay down the mortgage and as your home appreciates.
How much can I borrow with a HELOC in 2026?
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Most lenders allow up to 80–85% CLTV minus your existing mortgage. Example: $450,000 × 80% = $360,000 − $280,000 = $80,000 max. Some lenders go to 90% CLTV for borrowers with 760+ credit scores.
HELOC vs home equity loan — which is better?
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A HELOC is a revolving credit line — draw as needed, pay interest only on what you use, but rate is variable. A home equity loan gives a lump sum at a fixed rate with predictable payments. HELOCs suit ongoing projects; HE loans suit one-time large expenses.
What credit score do I need for a HELOC?
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Most lenders require a minimum 620 credit score. Best rates go to borrowers at 740+. You also typically need at least 15–20% equity and a DTI ratio under 43%.
Is borrowing against home equity a good idea?
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Home equity is best used for value-adding investments: home improvements, consolidating high-interest debt (replacing a 22% credit card with an 8% HELOC), or education. Avoid using it for discretionary spending — your home is the collateral.
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