.png&w=3840&q=75)
.png&w=3840&q=75)
HELOC Calculator
Home equity line of credit
How It Works
Free HELOC calculator to estimate the draw period, repayment period, and total cost of a home equity line of credit.
A home equity line of credit (HELOC) is a revolving line of credit secured by the equity in a home. Unlike a home equity loan, which provides a lump sum, a HELOC works more like a credit card, allowing borrowers to draw funds as needed up to a credit limit during the draw period.
HELOCs typically have two phases: a draw period (usually 5-10 years) during which the borrower can access funds and make interest-only payments, followed by a repayment period (usually 10-20 years) during which no further draws are allowed and the balance must be repaid in full.
HELOCs usually have variable interest rates tied to the prime rate, which means monthly payments can fluctuate. While HELOCs offer flexibility, the variable rates and potential for payment shock make them riskier than fixed-rate home equity loans. Responsible management is essential to avoid overborrowing.
Results
Enter values to see results
Quick Tips
- • Results update automatically as you type
- • Use Tab to navigate between fields
- • Press Enter to calculate