Use HELOC monthly payment calculator to compare different scenarios, calculate your estimated loan amount, and see your repayment schedule with just a few clicks.
A Home Equity Line of Credit (HELOC) is a revolving credit line that allows homeowners to borrow on the equity they have in their home. You can access your available credit limit when needed for renovations, school fees, debt consolidation, medical bills, emergencies, or any unexpected expense, and you will only pay interest on what you use.
A HELOC will usually have a variable interest rate, and this could be less than most credit cards or personal loans. Some lenders may offer fixed rates, allowing you to lock in your interest rate and have predictability for your monthly payment.
A HELOC has two phases. In your draw period, lasting usually five to ten years, you are able to access funds up to your approved amount as you need, while generally only making interest payments. After the draw period ends, your repayment phase begins, which usually averages ten to twenty years, when you will start principal and interest payments. You can use this HELOC loan calculator to estimate what your monthly payment will be.
This means you should weigh out options by reviewing products available as variable and fixed to find which works for you.
If you don't know how to calculate HELOC for your monthly payment. Let's figure it out here. They are usually two common monthly payment formulas you can use for a HELOC:
A HELOC offers several unique advantages for homeowners looking to tap into their property's value:
Is a home equity line of credit a good idea? Here are the advantages and disadvantages of HELOC that you might look up before you apply for it.
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What is the difference between Home Equity Loan and Line of Credit? They are both second mortgages, but they are two types of loans that use the value of your house as collateral. Here's the comparison.
| Home Equity Loan | HELOC | |
|---|---|---|
| What you get | One lump-sum payment | A revolving credit line you draw from |
| Interest rate | Usually fixed | Usually variable (some fixed options) |
| Payments | Principal and interest (fixed monthly) | Often interest-only during draw period then principal and interest later |
| Flexibility | Low — one-time funds | High — borrow, repay, borrow again up to limit |
| Best for | One-time big expenses | Ongoing or uncertain expenses |
| Main advantage | Predictable payments | Only pay interest on what you use |
| Main risk | Not reusable without new loan | Rate changes and payment shock when repayment starts |
Applying for a HELOC is straightforward and can usually be started online:
Most HELOC applications can be started and completed online, making the process quick and convenient. Your personal and account information will be kept private and secure during the entire process.
Check your home equity and credit, shop lenders for rates and terms, then apply online or in-branch. The lender will verify income, run a credit check, and usually require an appraisal or valuation. If approved, you'll close the line, pay any fees, and can draw during the draw period up to your limit.
Lenders typically want substantial home equity (often ~15–20% or more), a decent credit score (many require 620+, stronger terms for 700+), steady income, and an acceptable debt-to-income ratio. They also check mortgage payment history and the property type. Exact thresholds vary by lender.
Yes. You can refinance a HELOC into a new HELOC, convert it to a fixed-rate home equity loan, or roll it into a cash-out refinance of your first mortgage. Refinancing can lower payments, lock a fixed rate, or consolidate debt but compare costs, LTV limits, and fees.
It depends. For tax years covered by current IRS rules, HELOC interest is deductible only if the loan proceeds are used to "buy, build, or substantially improve" the home that secures the loan and you meet the mortgage interest limits and other conditions. Check IRS rules and consult a tax advisor.
Yes, HELOCs and home equity loans are commonly regarded as second mortgages because they sit behind your primary mortgage in lien priority. That means you must pay both your first mortgage and the HELOC, and the HELOC is secured by your home.
You can get HELOCs from banks, credit unions, and many online mortgage lenders. Big national banks, regional banks, credit unions, and specialist online lenders all offer HELOC products to compare rates, fees, draw periods, and lender reputation before choosing. Use lender reviews and rate listings to narrow choices.
To improve qualification, you can build equity, increase your credit score, lower outstanding debts to improve DTI, and document a steady income. Lenders will also want recent tax returns/pay stubs, mortgage statements, and proof of homeowners' insurance.
Most HELOCs will have a lower interest rate in comparison to credit cards or unsecured personal loans, however, they are usually variable rates, which means depending on the market rate, your payments could go up or down. Some lenders may have fixed options for their HELOCs.
Try our HELOC loan calculator online to calculate your options, compare payment schedules, and find the best rate for your needs. Apply online today or contact us for more information.