Heloc Ltv Calculator

Use this calculator to determine your Combined Loan-to-Value (CLTV) for a Home Equity Line of Credit (HELOC) and understand how much equity you might be able to access.

Current Appraised Home Value ($):

Outstanding First Mortgage Balance ($):

Proposed HELOC Limit ($):

Calculation Results:

Your Combined Loan-to-Value (CLTV):

Your Current Available Home Equity:

Maximum HELOC You Might Qualify For (based on 85% CLTV):

Understanding Your HELOC LTV

When considering a Home Equity Line of Credit (HELOC), one of the most critical metrics lenders evaluate is your Loan-to-Value (LTV) ratio, specifically the Combined Loan-to-Value (CLTV). This ratio helps lenders assess the risk associated with lending against your home's equity.

What is Combined Loan-to-Value (CLTV)?

CLTV is a ratio that compares the total amount of all loans secured by your home (your primary mortgage plus the proposed HELOC) to your home's current appraised value. It's expressed as a percentage. Lenders use CLTV to determine how much equity you have available and how much they are willing to lend.

The formula for CLTV is:

CLTV = (Outstanding First Mortgage Balance + Proposed HELOC Limit) / Current Appraised Home Value * 100

Why is CLTV Important for a HELOC?

Lender Risk Assessment: A higher CLTV indicates less equity in your home, which lenders perceive as higher risk. Most lenders have a maximum CLTV they will allow, often around 80% to 90%.
Approval Odds: Staying within a lender's CLTV limits is crucial for HELOC approval. If your CLTV is too high, you may need to reduce your proposed HELOC limit or wait for your home value to increase or your primary mortgage balance to decrease.
Interest Rates: Borrowers with lower CLTVs (meaning more equity) often qualify for better interest rates because they represent less risk to the lender.

How Much Equity Can You Access?

While you might have significant equity in your home (Current Appraised Home Value – Outstanding First Mortgage Balance), lenders typically won't let you borrow against 100% of it. They usually cap the CLTV at a certain percentage (e.g., 85%). This means the maximum total debt (first mortgage + HELOC) cannot exceed 85% of your home's value.

For example, if your home is valued at $400,000 and your first mortgage is $200,000, and the lender's maximum CLTV is 85%:

Maximum total debt allowed: $400,000 * 0.85 = $340,000
Maximum HELOC you could get: $340,000 – $200,000 = $140,000

Our calculator helps you quickly assess these figures, giving you a clear picture of your borrowing potential.

Factors Affecting Your HELOC LTV

Home Value: An increase in your home's appraised value will lower your CLTV, potentially allowing you to access more equity.
Mortgage Balance: As you pay down your primary mortgage, your outstanding balance decreases, which also lowers your CLTV.
Proposed HELOC Amount: The larger the HELOC you request, the higher your CLTV will be.

Understanding your HELOC LTV is the first step in making an informed decision about leveraging your home equity. Use this calculator to get started!

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