Calculate your home equity, LTV ratio, and how much you can borrow with a HELOC or home equity loan.
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Most lenders: 80–85%
The Chen family is buying a $340,000 home in Columbus, Ohio. Combined income $115,000, 10% down payment, 30-year fixed at 7.125%.
Takeaway: Columbus/Franklin County averages are the reference baseline. Property tax rates and insurance premiums shift significantly by ZIP code and HOA status. Plug your actual numbers in above.
We default to state-average millage rates. County and municipal rates vary 40%+ within a single state. Ohio ranges from 0.8% (rural counties) to 2.4% (Cuyahoga/Cleveland area). Always cross-check your specific county assessor's published effective rate.
Property Tax by StateHomeowner association fees add $100-$800/month in condos and planned communities. Condos in urban markets often run $400-$700/month. If your property has HOA, add it manually to any payment estimate — it directly affects your debt-to-income ratio for loan qualification.
HOA Fee CalculatorClosing costs typically run 2-5% of the loan amount — around $6,000-$15,000 on a $300K home. Lender fees, title insurance, escrow, and prepaid taxes add up fast. These are due at closing in cash, not rolled into the mortgage by default.
Closing Costs CalculatorPrivate mortgage insurance (PMI) costs 0.5-1.5% of the loan annually until you reach 20% equity. On a $300K loan at 1%, that's $250/month. PMI cancels automatically at 78% LTV under federal law — but you can request removal at 80%.
National home price appreciation has averaged ~4% annually since 1968, but markets diverge dramatically. Sun Belt metros averaged 10%+ during 2020-2022; coastal markets often lag the national average during correction cycles. Local supply constraints are the main driver.
If you've lived in the home 2 of the last 5 years, you can exclude $250K (single) or $500K (married) of gain from federal capital gains tax. Many calculators show gross profit without applying this exclusion. Relevant when projecting sale proceeds.
Home Sale Capital Gains CalculatorBased on your inputs
37.8% of home value
At 80% combined LTV
| Home Market Value | $450,000 |
|---|---|
| Mortgage Balance | $280,000 |
| Home Equity | $170,000 |
| Equity Percentage | 37.8% |
| Loan-to-Value (LTV) | 62.2% |
| Max Combined LTV (80%) | $360,000 |
| Max HELOC / 2nd Mortgage | $80,000 |
| PMI Status | ✅ No PMI required |
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Home equity = Current market value − Outstanding mortgage balance(s). If your home is worth $400,000 and you owe $250,000, you have $150,000 in equity (37.5%).
Most lenders allow combined LTV of 80–85%. With $400K home value and $200K mortgage (50% LTV), you could borrow up to $120K–$140K. Your credit score and income also factor in.
A HELOC is a revolving line of credit (like a credit card) with variable rates. A home equity loan is a fixed lump sum with fixed rates. HELOCs have draw periods (5–10 years) followed by repayment periods.
Yes. Your equity starts with your down payment and grows as you pay down the mortgage and/or the home appreciates in value.
Equity builds slowly in early mortgage years because most of your payment goes to interest. After 10 years on a 30-year mortgage, you may have paid down roughly 15-20% of the principal. Appreciation accelerates equity growth in rising markets.
Yes. Home equity decreases if property values decline or you take on additional debt against the home. Being 'underwater' means owing more than the home is worth, which happened to millions during the 2008 housing crisis.
Common HELOC uses include home renovations (most popular), debt consolidation, education expenses, and emergency funds. Home improvement HELOCs may offer tax-deductible interest if the funds improve the property securing the loan.
Make extra principal payments, choose a 15-year mortgage instead of 30-year, make biweekly payments (adds one extra payment per year), and invest in value-adding home improvements. Avoiding cash-out refinancing also preserves accumulated equity.
No. Home equity is one component of net worth. Net worth includes all assets (home equity, savings, investments, retirement accounts) minus all liabilities (mortgage, car loans, student loans, credit card debt). Home equity is often the largest single asset.
A cash-out refinance replaces your existing mortgage with a larger one and gives you the difference in cash. Most lenders allow up to 80% LTV. For example, on a $400,000 home with $200,000 owed, you could refinance for $320,000 and receive $120,000 in cash.
Home Equity = Home Value − Mortgage Balance
LTV = Mortgage Balance ÷ Home Value × 100
Max HELOC = (Home Value × Max LTV%) − Mortgage Balance
Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.
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Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.