An online HELOC calculator will help you get a relatively reliable idea of how much money you will pay each month for a home equity line of credit, but since these are revolving accounts with variable interest rates it's important to remember the payments may change.
Using HELOC Calculators
Online calculators can help you estimate the monthly payments on a variety of loans and revolving accounts, including home equity lines of credit. There are also calculators designed to help you estimate how much money you should pay each month in order to pay off a HELOC by a certain time, as well as calculators that will allow you to compare HELOCs and fixed interest rate home equity loans to see which one makes more sense for your situation.
What You'll Need
You will need some information for the calculator before you can receive a reliable estimate of your monthly payments:
- The amount of money you will borrow
- The interest rate you expect to receive
- The value of your home
- How much money you currently owe on the home
There are also calculators available online which will help you estimate how much money you should pay each month in order to pay off a HELOC by a certain time. For example, if you want to know how much quicker your home equity line of credit will be paid off if you pay and additional fifty dollars a month, an online calculator can forecast this as well as revealing how much money in interest charges you will save by making the extra payments. You can also find calculators online which will allow you to compare HELOCs and fixed interest rate home equity loans to see which one makes more sense for your situation.
Where to Find
There are plenty of online home equity line of credit calculators to choose from. Here is a brief listing of some popular selections:
If you plan on opening a HELOC with a particular lender be sure to check out the calculators offered on the lender's website.
Special Circumstances
Before filling out a HELOC calculator online at a lender's website, you should make sure that your circumstances actually qualify you for the interest rate advertised within the calculator. HELOCs can be tricky accounts, and interest rates are usually higher than the advertised interest rate in a few circumstances:
- The loan-to-value (LTV) of your home is more than 80%. In other words, the total of all mortgages on your home is more than 80% of what your home is worth. Many lenders offer HELOC accounts to homeowners with higher LTVs, but the interest rate is higher.
- You do not live in the home. Investment properties and other non-owner occupied homes will usually have a higher interest rate for a HELOC than a primary residence will.
Each lender sets their own interest rates and regulations for home equity lines of credit, so it is important to pay attention to each lender's specifications. Do not assume that just because a lender's website pre-fills an interest rate into the online HELOC calculator that this means you are assured that interest rate.
The Benefit
Using an online calculator before applying for a HELOC can help you go into the process more informed about potential payments than if you had simply jumped into the process without doing any research beforehand.
