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.
Your home is likely your biggest asset, and if you have owned it for a few years, there is a good chance it’s sitting on more value than you realize. Our HELOC calculator gives you an instant, no-obligation estimate of how much you could borrow against your home’s equity, what your payments could look like during the draw period versus the repayment period, and how a home equity line of credit compares with other ways to access your equity. Whether you are planning a renovation, consolidating higher-interest debt, or building a financial cushion, this tool helps you see your real numbers before you ever pick up the phone.
At Reliance Financial, we go beyond a simple calculator. Our advisors bring a CPA background to every conversation, which means we look at your HELOC decision in the context of your full financial picture, not just the interest rate being offered. From your first estimate to your final closing, our goal is to help make sure the line of credit you choose actually fits your goals.
Why Use Our HELOC Calculator?
A home equity line of credit can be one of the most flexible and cost-effective ways to borrow money, but the numbers can be confusing if you’ve never used one before. Our calculator takes the guesswork out of the equation and gives you clarity in minutes.
- Instantly Estimate Your Available Home Equity
- See Draw-Period vs. Repayment-Period Payments Side by Side
- Compare a HELOC Against a Cash-Out Refinance or Home Equity Loan
- Understand Your Loan-to-Value Ratio in Plain Terms
- Get a Realistic Picture Before You Apply – No Obligation, No Hard Credit Pull
Simply enter your home’s estimated value, your remaining mortgage balance, and a few basic details, and our calculator will show you your estimated available credit line, projected monthly payments, and total borrowing costs, all tailored to your numbers, not a generic example.
How Our HELOC Calculator Works?
Step 1: Enter Your Home and Mortgage Details
Start by entering your home’s current estimated value and your remaining mortgage balance. This tells us your existing equity position and forms the foundation for every calculation that follows.
Step 2: Add Your Credit Profile
Provide your approximate credit score range. Lenders use this, along with your income and debt-to-income ratio, to determine your final approved credit line and interest rate, so an accurate estimate here means a more accurate result.
Step 3: Choose Your Borrowing Amount
Enter the amount you’d like to borrow, or use the slider to see your maximum available credit line based on standard loan-to-value guidelines, typically up to 80–85% of your home’s value minus your existing mortgage balance.
Step 4: Review Your Personalized Results
Instantly see your available equity, your estimated interest-only payment during the draw period, your fully amortizing payment during the repayment period, and how your HELOC compares to alternative financing options.
Understanding Your HELOC Numbers
A home equity line of credit works differently from a traditional loan, and understanding the mechanics behind your results helps you borrow with confidence.
Your Available Equity
Most lenders allow you to borrow up to 80–85% of your home’s combined loan-to-value ratio. For example, a $700,000 home with a $350,000 remaining mortgage balance could unlock as much as $210,000 in available credit, subject to your credit profile and lender approval.
The Draw Period
This is the first phase of your HELOC, typically around 10 years. During this time, you can borrow, repay, and borrow again up to your approved limit, and you will usually make interest-only payments on whatever balance you’ve drawn, keeping your monthly costs low while you have access to funds when you need them.
The Repayment Period
Once the draw period ends, typically after 10 years, your HELOC enters a repayment period, often around 20 years, during which you can no longer draw new funds and your payment shifts to include both principal and interest. This can mean a noticeably higher monthly payment, which is why our calculator shows you this number upfront, not as a surprise years down the road.
Variable Interest Rates
Most HELOCs carry a variable interest rate tied to a benchmark such as the Prime Rate, plus a margin set by your lender. Our calculator lets you test how a change in rates could affect your future payments, so you can plan with your eyes open.
HELOC vs. Cash-Out Refinance vs. Home Equity Loan
Not sure a HELOC is the right fit? Our calculator also shows you how it compares to two common alternatives:
- HELOC – A revolving credit line on top of your current mortgage. Variable rate. You only pay interest on what you draw.
- Cash-Out Refinance – Replaces your entire first mortgage with a new, larger loan. Often a fixed rate, but resets your mortgage term.
- Home Equity Loan – A second mortgage with a fixed rate and a lump-sum payout, ideal if you know exactly how much you need upfront.
Each option has its place, and the right choice depends on your current mortgage rate, how long you plan to stay in your home, and what you’re using the funds for. Our advisors are happy to walk through the trade-offs with you, free of charge and with no obligation.
Smart Ways Homeowners Use a HELOC
A home equity line of credit is flexible by design, which is part of why it’s such a popular financing tool. Common uses our clients bring to us include:
- Home renovations and improvements, such as kitchen remodels, additions, or roof replacements, often a smart use since the funds can boost your home’s value
- Consolidating higher-interest debt, such as credit cards or personal loans, into one lower-rate payment
- Covering education costs without disrupting long-term investments or retirement savings
- Building a flexible cash reserve for emergencies, without paying interest until funds are actually drawn
- Funding a down payment on an investment property or second home
Because you only pay interest on the amount you actually draw, a HELOC can be a cost-effective safety net even if you don’t use the full line right away, a flexibility that sets it apart from a traditional lump-sum loan.
Get Your Free HELOC Estimate Today!
Ready to see what your home’s equity could do for you? Use our HELOC calculator now for an instant, personalized estimate, then connect with one of our advisors for a free consultation and a no-obligation rate quote. As an Equal Housing Lender (NMLS #309198), Reliance Financial is committed to helping you make a confident, well-informed borrowing decision.
