Calculator Inputs
Example Data Table
| Field | Example Value | Why It Matters |
|---|---|---|
| Home Value | $500,000 | Sets the property value base for available equity. |
| Current Mortgage Balance | $250,000 | Reduces remaining equity available to borrow. |
| Requested Equity Loan | $100,000 | Represents the planned borrowing amount. |
| Maximum LTV | 80% | Caps borrowing relative to property value. |
| Annual Interest Rate | 7.25% | Determines monthly finance cost. |
| Loan Term | 15 years | Controls repayment length and payment size. |
| Origination + Closing | 1.00% + $2,500 | Adds lender and settlement costs. |
| Taxes + Insurance + HOA | $4,800 + $1,800 + $120 monthly | Builds a more realistic monthly housing outflow. |
Formula Used
1) Available Equity
Available Equity = (Home Value × Maximum LTV) − Current Mortgage Balance
2) Origination Fee Amount
Origination Fee = Approved Loan × Origination Fee Rate
3) Financed Principal
Financed Principal = Approved Loan + Financed Fees
4) Amortizing Monthly Payment
Payment = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Where P is financed principal, r is monthly rate, and n is total monthly payments.
5) Interest-Only Monthly Payment
Payment = Principal × Monthly Rate
6) Total Estimated Monthly Outflow
Outflow = Loan Payment + Extra Principal + Monthly Tax + Monthly Insurance + HOA
7) Combined LTV
Combined LTV = (Current Mortgage Balance + Approved Loan) ÷ Home Value
How to Use This Calculator
- Enter your estimated home value and current mortgage balance.
- Type the amount you want to borrow from available equity.
- Set the maximum LTV allowed by your target lender.
- Choose an amortizing or interest-only payment structure.
- Add the annual rate, term, fees, and housing cost details.
- Include any extra monthly principal payment you plan to make.
- Click Calculate Payment to show results above the form.
- Review the graph, summary cards, and schedule preview.
- Use the export buttons to save the report as CSV or PDF.
Frequently Asked Questions
1) What does this calculator estimate?
It estimates monthly home equity borrowing costs using loan size, rate, term, fees, taxes, insurance, HOA dues, and extra payments. It also shows borrowable equity, combined LTV, and an amortization preview.
2) Is this a lender approval tool?
No. Lenders also review credit, income, debt ratios, occupancy, appraisal results, title, and underwriting rules. Use this as a planning estimate, not a final approval or disclosure.
3) Why can the approved loan be smaller than my request?
The model caps borrowing at your selected maximum LTV. If your current mortgage already uses much of the value, the remaining available equity may be lower than requested.
4) Do taxes and insurance change the actual loan payment?
Usually they do not change principal and interest. Here they are added to your estimated housing outflow so monthly budgeting reflects a more realistic total obligation.
5) What happens when I finance the fees?
Financed fees are rolled into the balance instead of paid at closing. That lowers upfront cash needed, but raises principal, interest expense, and sometimes the monthly payment.
6) Does the extra payment field really matter?
Yes. Extra principal can shorten payoff time and reduce total interest on amortizing loans. For interest-only setups, extra principal lowers the remaining balloon balance.
7) What is a balloon balance?
A balloon balance is unpaid principal left at the end of an interest-only term. It often must be repaid, refinanced, or converted according to lender rules.
8) Are these results exact?
They are estimates. Rounding, escrow methods, rate locks, promotional periods, lender fees, and changing taxes or insurance can produce different figures on official documents.