Authoritative data source & methodology
Primary consumer guidance: Consumer Financial Protection Bureau (CFPB), “Home equity loans and HELOCs.” cfpb.gov. Last accessed 2025-10-30.
Mortgage math: Standard amortization using the fixed-payment formula and interest-only computations for draw periods.
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
The formulas explained
LTV and CLTV
$$ \mathrm{LTV} = \frac{\text{Existing First Mortgage}}{\text{Property Value}} $$
$$ \mathrm{CLTV} = \frac{\text{Existing Liens} + \text{New Loan}}{\text{Property Value}} $$
Max borrow under LTV cap
$$ \text{MaxBorrow} = (\text{LTV}_{\max} \cdot \text{Value}) - \text{Existing Liens} $$
Fixed loan payment
$$ M = P \cdot \frac{i(1+i)^n}{(1+i)^n - 1} \quad \text{with } i=\frac{\text{APR}}{12},\ n=12\cdot \text{years} $$
HELOC (interest-only during draw)
$$ M_{\text{io}} = P \cdot \frac{\text{APR}}{12} $$
Glossary of variables
- Property Value: Estimated market value of the home.
- Existing Liens: Sum of all mortgages or liens currently on the property.
- LTV: Current loan-to-value (first mortgage ÷ value).
- CLTV: Combined loan-to-value after adding the new loan.
- LTV Cap: Maximum lender-allowed ratio used to compute Max Borrow.
- APR: Annual percentage rate used for payment calculations.
- Term: Repayment period (years). For HELOC, draw may be interest-only.
- Available Equity: Value − existing liens (not all equity may be borrowable).
How it works: A step-by-step example
Example scenario
Home value = $450,000; first mortgage = $260,000; no other liens; LTV cap = 80%; desired new loan = $50,000; APR = 7.25%; term = 10 years (fixed).
- Available equity = $450,000 − $260,000 = $190,000.
- Max borrow = 0.80 × $450,000 − $260,000 = $100,000.
- CLTV (with $50,000) = ($260,000 + $50,000)/$450,000 = 69.8%.
- Monthly payment (fixed) uses the amortization formula above; the schedule shows interest and principal breakdown over 120 months.
Frequently asked questions
What’s a “good” CLTV?
Many lenders prefer CLTV ≤ 80%, but thresholds vary by credit profile, income, property type, occupancy, and market. This tool highlights both your current LTV and resulting CLTV.
Does the calculator include fees or points?
By default no. Use “Advanced options” to wrap estimated fees into the loan amount, which will increase payment and interest.
How are HELOC payments handled?
During the draw, payments are typically interest-only: interest = APR/12 × balance. After draw, the balance amortizes; this tool focuses on the draw payment and provides an amortized schedule if you choose a fixed loan instead.
Will my lender’s schedule match this exactly?
Real schedules may differ due to exact day counts, compounding conventions, funding dates, and rate changes. Use our outputs as planning estimates.
Can I compare multiple scenarios?
Yes—adjust inputs and print or export the schedule after each run to compare side-by-side.
Tool developed by Ugo Candido. Finance content reviewed by the CalcDomain Editorial Board.
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