Home Equity Loan Calculator
Key Terms Explained
Home Equity: The difference between your home's market value and the outstanding mortgage balance.
Loan-to-Value (LTV) Ratio: The percentage of your home's value that a lender will allow you to borrow.
Amortization: The gradual repayment of a mortgage through monthly payments of principal and interest.
5 Smart Tips for Home Equity Loans
- Always compare LTV offers from multiple lenders
- Use equity for value-adding home improvements
- Consider shorter terms for lower interest costs
- Never borrow more than 80% of your home's value
- Check for prepayment penalties before signing