≈ $0 down
Estimated total
$616/mo
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By Alex Diaz · How we calculate this
Lenders typically cap how much you can borrow with a home equity loan at around 80-85% of your home's value combined with what you still owe on your mortgage. This calculator turns the loan amount, interest rate, and term into a monthly payment, then weighs that against your income to gauge how risky carrying it would be.
These key factors affect home equity loan affordability
Income and expenses
A home equity loan payment lands on top of your existing mortgage, so it's weighed against your income and any other debt you've logged rather than considered on its own.
Credit score
Home equity loans are priced by credit tier much like a mortgage, and since your home secures the loan, a lower score can mean a meaningfully higher rate stacked on top of what you're already paying on your first mortgage.
Equity and loan-to-value
How much you can borrow comes down to your home's value minus what you still owe, with lenders generally capping the combined total around 80-85%. That math determines whether a given loan amount is even realistic before rate or term come into play.
Fixed loan vs. line of credit
A home equity loan gives you a lump sum at a fixed rate and payment. A HELOC works more like a credit line with a variable rate that you can draw down and repay over time, and the two carry different risk profiles worth understanding before you settle on which one you're actually pricing here.
What it's secured against
Because your home backs the loan, missing payments carries more risk than an unsecured loan or credit card would - worth being confident in the monthly payment before borrowing against your equity.
Tax deductibility of the interest
Interest on a home equity loan is only tax-deductible if the money goes toward buying, building, or substantially improving the home that secures it. Use it to consolidate debt, cover tuition, or pay for something unrelated to the property, and that deduction doesn't apply - a rule that's been in place since 2018 and is worth confirming with a tax professional rather than assuming automatically.
How to use your results
Try adjusting the inputs to see what actually moves your risk score:
- Loan amount and term - see how each moves your monthly payment and risk score.
- Existing debt - include your primary mortgage payment for a complete picture.
- Interest rate - compare a fixed-rate loan against a variable-rate HELOC quote.
Ways to make a home equity loan more affordable
- Pay down existing debt before taking on additional borrowing against your home.
- Shop multiple lenders, since rates and fees for home equity products vary meaningfully.
- Borrow only what you need for the specific purpose rather than the maximum available.
- Improve your credit score before applying, even by a modest amount.
More housing calculators
Peer comparison data
Bureau of Labor Statistics (median income by age), Experian (credit score by age)
Used by the “how you compare” figures in the sidebar, not by the costs on this page.
Every figure on this site, with its source and the date it was last verified
How you compare
Income
Credit score
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