Home Equity Line of Credit
How much can your home
work for you?
Estimate your available credit line, monthly payments, and total cost across the draw and repayment phases of your HELOC.
Your Loan Scenario
Which HELOC fits your situation?
Standalone Standard
Best if you already own your home and want access to equity with a 640+ FICO. Credit lines up to $350,000, max 85% CLTV on primary or second homes. Lower bar to entry -- good starting point for most homeowners.
Property Type
Home Value
$
Mortgage BalanceCurrent first lien balance
$
Max CLTV
Up to 85% for this product
%
Interest Rate (planning estimate)Floor 4%, cap 18%
%
Rate Stress TestWhat if Prime rises?
Draw Period
Loan TermDraw + repayment combined
Amount to DrawCapped at your credit line
$
Want to know if you qualify?
Your Estimated Results
Available Credit Line
$287,500
Based on 85% CLTV • Planning estimate only
Draw Period Payment
$708
Interest only / mo
Repayment Payment
$867
Principal + interest / mo
Draw Period Interest
--
Total Interest
--
Total Cost of Borrowing
--
Principal + all interest over full term
Loan Timeline
30 years total
Draw 5 yrs
Repayment 25 yrs
Year-by-Year Cost Summary
| Year | Phase | Monthly Pmt | Annual Interest | Balance |
|---|
Monthly Payment by Year
Teal bars = draw period (interest only). Purple bars = repayment period (principal + interest). Planning estimates only.
HELOC Product Quick Reference
| Parameter | Standalone Standard | Standalone Enhanced | Piggyback HELOC |
|---|---|---|---|
| Loan Term | 20 or 30 year | 20 or 30 year | 30 year only |
| Draw Period | 3 or 5 year | 3 or 5 year | 3 or 5 year |
| Min Loan Amount | $25,000 | $25,000 | $20,000 |
| Max Loan Amount | $350,000 | $500,000 | $500,000 |
| Min FICO (Primary / 2nd) | 640 | 680 | 680 |
| Min FICO (Investment) | 640 | 700 | 700 |
| Max CLTV (Primary / 2nd) | 85% | 90% | 90% |
| Max CLTV (Investment) | 75% | 75% | 75% |
| Max DTI | 50% | 50% | 50% or AUS |
| Rate Index | Prime | Prime | Prime |
| Rate Floor / Cap | 4% / 18% | 4% / 18% | 4% / 18% |
| Qualifying Rate | Index + Margin + 2% | Index + Margin + 2% | Index + Margin + 2% |
| Underwriting | Manual (Fannie Mae guide) | Manual (Fannie Mae guide) | Fannie or Freddie AUS (follows first lien) |
Source: UWM HELOC Comparison Grid. For full guidelines refer to the UWM product guide. This table does not guarantee loan approval.
Frequently Asked Questions
What is a HELOC and how does it work?
A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home's equity. During the draw period (3 or 5 years) you can borrow, repay, and re-borrow up to your credit limit, paying interest only on what you use. After the draw period ends, the balance converts to the repayment phase where you pay principal and interest until the loan is paid off.
What is the difference between Standalone and Piggyback HELOCs?
A Standalone HELOC is opened on a property you already own. A Piggyback HELOC is originated simultaneously with a purchase first lien -- often used to avoid mortgage insurance by keeping the first lien below 80% LTV. Piggyback HELOCs have a 30-year term only and are underwritten by Fannie Mae or Freddie Mac AUS following the first lien.
How is my credit line calculated?
Lenders multiply your home's appraised value by the maximum CLTV allowed, then subtract your current mortgage balance. For a primary or second home, the max CLTV is 85% (Standard) or 90% (Enhanced / Piggyback). Investment properties are capped at 75% CLTV across all products. Minimum loan amounts start at $25,000 for Standalone and $20,000 for Piggyback.
Is a HELOC rate fixed or variable?
HELOCs carry a variable rate tied to the Prime Rate plus a lender margin. The rate floor is 4% and the cap is 18% (or lower if state law requires). The qualifying rate used to determine eligibility is Prime plus your margin plus 2%. The rate in this calculator is a planning estimate and is not a commitment to lend.
What happens when the draw period ends?
When your draw period ends (after 3 or 5 years), the line closes to new borrowing and your outstanding balance amortizes over the remaining loan term. On a 30-year HELOC with a 5-year draw, you have 25 years to repay. Monthly payments increase to cover both principal and interest -- the chart above shows this payment step-up visually.
What credit score do I need?
The minimum FICO depends on the product. Standalone Standard requires a 640 minimum. Standalone Enhanced and Piggyback require 680 for a primary or second home, and 700 for an investment property. Maximum DTI is 50% across all products. Call us at 888-973-5346 to review your full scenario before applying.
Planning estimates only. Not a commitment to lend. This calculator provides illustrative figures based on interest-only payments during the draw period and fully-amortizing payments during the repayment period. Actual credit lines, rates, payments, and eligibility depend on your credit profile, appraisal, lender guidelines, and market conditions. HELOCs carry variable rates that may increase over time. Rate shown is a planning estimate and is not an offer of credit. Product parameters based on current lender guidelines; subject to change. All figures shown are for educational planning purposes only.
