Home Equity Loan vs a Line of Credit (HELOC).
How To Use the Truliant Home Equity Calculator
Enter the values or use the slide.
- Start with Basic (default) and use Advanced if needed
- Add the Loan amount
- Add the Interest rate (check rates here)
- Enter the Months to pay off
The calculator will display the initial payment for a home equity loan and a HELOC.
A home equity loan or line of credit is money borrowed using the equity from your home as collateral. A HELOC (home equity line of credit) gives you the option to draw from the available line of credit and you are only obligated to the amount drawn.
Equity = a homes fair market value minus all mortgages and/or loans against it.
Example: a home valued at $500,000 with a mortgage balance of $300,000 has an equity value of $200,000.
Interest rates on home equity loans vary according to your credit score and length of the loan.
Failure to make payments, according to the terms of the loan, can result in foreclosure of the property.