Home Equity Line Credit Bank America Calculator

Formatting only. This does not change the calculation.
Appraised or estimated market value of the home.
Everything already secured on the property - the first mortgage plus any existing second.
The combined loan-to-value ceiling the lender will lend to. 80-90% is typical.
Leave at 0 to size the line from the property value and the LTV ceiling.
The amount you have borrowed, or plan to borrow, against the line.
The current rate on the line. HELOC rates vary; this is held constant for the projection.
Years during which you may borrow. Set to 0 for a closed-end home equity loan.
Monthly payment during the draw period
354.17
HELOC and Home Equity Calculator
Home equity
200,000.00
Loan-to-value
55.5556 %
Combined LTV including the drawn line
66.6667 %
Maximum credit line
132,500.00
Credit still available
82,500.00
Monthly payment during the repayment period
433.91
Payment increase at the end of the draw period
79.74
Interest paid during the draw period
42,500.00
Interest paid during the repayment period
54,139.23
Total interest over the life of the line
96,639.23
Total of all payments
146,639.23
Total months to repay
360
Worked out from Home-Equity Arithmetic Calculator and 3 other sources.
Interest-only payments during the draw period repay no principal, so the full drawn balance still has to amortise afterwards.
The rate is held constant. A real HELOC rate moves with its index and margin.
An estimate only. A real HELOC carries a variable rate (index plus margin, subject to caps and a floor), lender minimum payments, and fees that are not modelled here. Confirm every figure against your lender's disclosures.

How this is worked out

6 steps
  1. Home equity = 450000 - 250000 = 200000
  2. Loan-to-value = 100 x 250000 / 450000 = 55.5556%
  3. Credit line = 85% x 450000 - 250000 = 132500
  4. Draw-period payment = 50000 x 8.5%/12 = 354.17
  5. Repayment-period payment = P i / (1 - (1+i)^-n) on 50000 over 240 months = 433.91
  6. Total interest = 42500 in the draw period + 54139.23 in repayment = 96639.23

Results are general information, not financial, tax, legal, medical or engineering advice.