HELOC and Home Equity Calculator
A line of credit has two lives — the draw and the repayment. Both belong in your budget.
What This Calculator Does
Give it the value of the home, the balance on the first mortgage, and the combined loan-to-value ceiling your lender works to. Out comes the credit line available to you, the monthly cost during the interest-only draw window, and the payment once the line converts to full principal and interest.
Who Is This For
Owners of appreciated Miami homes and condos who want their equity without disturbing a low first-mortgage rate, investors funding a renovation or a down payment, and anyone setting a HELOC against a cash-out refinance.
How It Works
Supply the property value, the first-mortgage balance outstanding, the combined loan-to-value limit you anticipate, your rate, and the length of both the draw and repayment phases. Calculate to see borrowing capacity and the payment in each phase.
Frequently Asked Questions
How large a line can I get?
Lenders fix a combined loan-to-value ceiling covering the first mortgage and the new line together, then subtract what is already owed. Whatever remains is your limit. The ceiling itself shifts with the lender, your credit profile, and whether the home is a primary residence, second home, or rental.
Draw period or repayment period?
Through the draw period you borrow, repay, and borrow again, with a minimum payment that is typically interest only on the balance used. Once that window shuts, principal joins the payment and the number can jump sharply. Budget for that step-up before the first draw, not after.
Is the rate fixed?
Rarely. Most lines follow an index plus a margin, so the payment travels with the index in both directions. Whatever figure appears here is a snapshot at the rate you typed, not a commitment. Ask about rate caps and any fixed-rate lock option before signing.
Which is better, a HELOC or a cash-out refinance?
Where the rate on your first mortgage sits far below the market, a HELOC preserves it and lets you borrow only what is needed. A cash-out refinance rewrites everything at one rate, which makes sense when that new rate is competitive with the old one, or when a fixed payment is worth more to you than flexibility.
Can I take a line on a condo or second home?
Yes, with tighter terms. Condo underwriting includes association finances, insurance, and reserves, and combined loan-to-value ceilings run lower on second homes and investment property than on a primary residence. South Florida owners should expect association documents to form part of the file.