Maximum Home Equity Loan Amount Calculator - Calculate Maximum Borrowing Potential

How to Use This Calculator

1. Enter your home's current value: Input the current market value of your property. You can use a recent appraisal or compare similar homes in your area.
2. Enter your outstanding mortgage balance: Input the remaining balance on your existing mortgage.
3. Select the LTV ratio: Choose the loan-to-value ratio offered by your lender (typically 80% is standard).
4. View your results: The calculator will instantly show you the maximum amount you can borrow and your current LTV ratio.

Frequently Asked Questions

What Is LTV (Loan-to-Value) Ratio?

LTV ratio is the percentage of your home's value that you're borrowing. For example, if your home is worth $600,000 and you have a total loan of $480,000, your LTV ratio is 80%.

What Is a Good LTV Ratio for a Home Equity Loan?

Most lenders prefer an LTV ratio of 80% or less, though some may go up to 90%. Lower LTV ratios typically result in better interest rates and terms.

How Much Equity Do I Need to Qualify?

Generally, you'll need at least 15-20% equity in your home to qualify for a home equity loan. This means your LTV should be 85% or lower.

What Can I Use a Home Equity Loan for?

Home equity loans can be used for various purposes including home improvements, debt consolidation, education expenses, medical bills, or other major purchases.