Frequently Asked Questions

Multiply your home value by the lender’s CLTV cap (usually 80%) and subtract your mortgage balance. On a $450,000 home owing $280,000: $450,000 × 0.80 = $360,000 − $280,000 = $80,000 borrowable — even though total equity is $170,000. Type your numbers into the calculator above and press “Use max at 80% CLTV” for the exact figure.

At 8.5% APR for 10 years: about $620/month, with roughly $24,400 total interest. Stretch the same loan to 15 years at 8%: about $478/month but roughly $36,000 lifetime interest. Longer terms cut the payment and raise the lifetime cost — the calculator shows both side by side.

At 8.5% for 15 years: about $985/month, with roughly $77,200 total interest. At 8% for 10 years: about $1,213/month but only ~$45,600 interest. Run both terms in the calculator before you choose — the 15-year option costs over $30,000 more in interest here.

The draw period (often 10 years) lets you borrow, repay, and re-borrow up to your limit — many lenders ask interest-only payments. Then the repayment period (often 15 years) freezes borrowing and amortizes the balance, so payments typically jump 2–4×. Always budget the repayment payment, not the draw payment.

Take the fixed loan when you need the full amount on day one — a roof, debt consolidation, one tuition bill — and want payment certainty. Take the HELOC for staged or uncertain draws like phased remodels or semester-by-semester tuition, where you pay interest only on what you use. Compare both on the same amount in the Loan vs. HELOC box on this page.

80% combined loan-to-value unlocks the best rates almost everywhere. Some lenders go to 85–90% with higher rates and stricter credit and income checks; above 90% is rare and pricey. Texas caps all home-equity debt at 80% by state constitution. The calculator warns you the moment your inputs cross 80% or your chosen cap.

Home equity loans are almost always fixed — the payment on day one is the payment in year ten. HELOCs are almost always variable, priced as prime plus a margin, with annual and lifetime caps. A +2% rise on a $40,000 HELOC balance adds roughly $50/month to the repayment payment.

Fixed loans: $300–$700 appraisal, 0–1% origination, $200–$800 title and recording — many lenders credit some fees for autopay. HELOCs: often $0 upfront, then $50–$75 per year plus early-closure fees. Enter fees in the calculator (dollars or percent, upfront or financed) to see the true cost and the effective APR, not just the payment.

Yes — $100/month extra on a $50,000, 8.5%, 10-year loan saves about $4,600 in interest and erases 20 payments. Every extra dollar skips straight to principal, earning a guaranteed, risk-free return equal to your APR. The calculator above prices your exact extra-payment plan instantly.

Most lenders want 620+ to qualify, with the best rates reserved for 740+. But score is only half the test: lenders cap debt-to-income near 43–50% including the new payment, require 15–20% equity to remain, and order their own appraisal. A 780 score with 55% DTI still gets declined.

Add your current mortgage payment, all other monthly debts, and the new equity payment, then divide by gross monthly income. Example: $1,800 mortgage + $400 debts + $620 equity payment = $2,820 ÷ $8,000 income = 35.3% DTI — inside most caps. Use the Affordability check in the calculator to meter your own figure.

Sometimes: if the money buys, builds, or substantially improves the home securing the loan and you itemize deductions, interest may be deductible within IRS limits. Personal spending — vacations, cars, general bills — generally isn’t. Confirm your situation with a tax professional before counting on it.

Some lenders offer a below-market rate for the first 6–12 months of the draw period — e.g., 3.99% before the regular 9% variable rate kicks in. It cuts early interest but changes nothing long-term: model it in our HELOC calculator’s intro fields and budget the post-intro payment from day one.

Borrowing freezes and the outstanding balance amortizes over the repayment period — payments typically jump 2–4× overnight. A $40,000 balance at 9% goes from $300/month interest-only to about $406/month over 15 years, before any rate rise. Our calculator shows both payments so the jump never surprises you.

Typically 2–6 weeks: application and documents (days 1–3), appraisal or valuation plus underwriting (days 4–14), approval and disclosures, then a 3-day right of rescission on primary homes. HELOCs fund right after rescission as an open line; loans fund as one lump sum.

One hard inquiry dings a few points briefly — rate-shop within a 14–45 day window and same-purpose pulls count as one. After opening, high HELOC utilization (over ~50% drawn) can drag scores until you pay it down, while on-time payments on either product help over time.

A second mortgage is any loan secured by your home behind your first mortgage in lien priority — that’s exactly what home equity loans and HELOCs are. “Second” describes claim order in foreclosure, not the number of loans you have. Because the second lien takes more risk, its rate runs 1–3 points above first-mortgage rates.

A cash-out refi replaces your entire first mortgage with a bigger one and hands you the difference. It wins when market rates are below your current mortgage rate — you improve the big loan and tap equity at once. It loses when your first mortgage rate is already low, since you’d reprice cheap old debt upward just to access equity. Compare both paths before choosing.

Yes, in almost all cases — the lender orders it (or an automated valuation) and lends against that number, not listing sites or tax assessments. Appraisals often land 3–8% below optimistic estimates, which shrinks the 80%-CLTV ceiling directly. A low appraisal is the most common surprise in second-lien applications.

Yes. Every calculation runs entirely in your browser — no account, no database, no numbers sent to any server. Share links encode inputs in the URL so only people you send them to can see them, and clearing site data removes the only things ever stored: theme, language, and cookie-banner choice.