All calculations run entirely in your browser using the formulas below. Results are estimates for planning — not loan offers. Always confirm figures with a licensed lender or HUD-approved counselor.
Home equity
Your home equity is your home's current market value minus everything you owe against it. Borrowable cash is the home value times the lender's combined loan-to-value (CLTV) cap (typically 80–85%), minus your existing balance.
Home equity loan
A home equity loan is a fixed-rate second loan. The maximum you can borrow is the home value times the CLTV cap (80–85%) minus your current balance; the monthly payment is that loan amount amortized at a fixed rate over your chosen term using the standard amortization formula.
HELOC payment
A home equity line of credit (HELOC) has two phases. During the interest-only draw period, the payment is the balance times the monthly interest rate (annual rate ÷ 12). During the repayment period, the balance is amortized into principal-and-interest over the remaining term using the standard amortization formula.
Cash-out refinance
A cash-out refinance caps the new loan at the lender's max loan-to-value (LTV) (usually 80% conventional). Available cash is that cap minus your current balance; the new monthly payment is the full new loan amount amortized at your rate and term.
Reverse mortgage (HECM)
A Home Equity Conversion Mortgage (HECM) payout is your home value (capped at the HUD limit of $1,209,750) times a Principal Limit Factor (PLF) set by the youngest borrower's age and the expected interest rate, minus financed closing costs and any mortgage that must be paid off.
Authoritative sources
- Consumer Financial Protection Bureau — Owning a Home
- CFPB — Mortgages
- CFPB — Reverse Mortgages
- U.S. Department of Housing and Urban Development (HUD) — HECM program
Editorial standards
HomeEquityWise is an independent educational resource maintained by the HomeEquityWise Editorial Team. We are not a lender, mortgage broker, or financial advisor, and nothing on this site is financial advice or an offer of credit.
How we research and write
Every calculator and guide is built from primary sources only — the Consumer Financial Protection Bureau (CFPB), the U.S. Department of Housing and Urban Development (HUD), the IRS, and Fannie Mae / Freddie Mac. We do not cite other blogs as authorities. Each money figure (loan-to-value caps, the HUD maximum claim amount, mortgage-insurance rates, principal-limit logic) is traced to one of those agencies and linked on the relevant page.
How our math is verified
The calculator engine uses the same standard formulas lenders use — the amortization formula for fixed payments, monthly interest for draw-period HELOC payments, loan-to-value caps for borrowing limits, and HUD principal-limit-factor logic for reverse mortgages. Worked examples on each page let you check the math by hand against the result.
Review and updates
Each page carries a visible "Last updated" date. We review rate-sensitive figures and federal limits (such as the annual HUD HECM limit) at least once a year and whenever the underlying rules change, and we update the page and its date when we do.
Corrections
If you spot an error, email hello@homeequitywise.com and we will verify it against the primary source and correct it promptly.
Independence
We don't sell your data, and the lender names we list are not paid placements — they're included for convenience, not endorsement. Some pages display ads or link to a paid home-value lookup; that revenue never changes the math, the sources, or which options we recommend.