Corie Adams
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HELOC Calculator

A home equity line of credit lets you tap equity without touching a first mortgage you may not want to give up, which matters enormously if your current rate is low.

The catch is structure: HELOCs typically start with an interest-only draw period, then convert to full repayment. The payment can jump significantly at that point.

Your numbers

$425,000
$245,000
$60,000

Your results

Available credit line

$116,250

At 85% combined loan-to-value

Interest-only payment
$425During the 10-year draw period
Repayment payment
$521Once repayment begins over 20 years
Payment increase at conversion
$96
Interest paid during draw
$51,000No principal reduction
Current equity
$180,000
Combined LTV after draw
71.8%

What happens if you change this

You have $116,250 available at 85% combined loan-to-value. Drawing $60,000 costs $425 a month during the interest-only period, but that pays down nothing, and $51,000 in interest goes out over 10 years. When repayment starts, the payment jumps to $521, an increase of $96. HELOC rates are typically variable, so budget for movement rather than assuming 8.5% holds.

Keep these numbers

Your results are yours already. If it helps, send them to yourself, or have Corie look at the same scenario and tell you what she would change.

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Questions people ask

HELOC or cash-out refinance?
If your first mortgage rate is well below current rates, a HELOC usually wins because it leaves that rate untouched. If you need a large sum and rates have fallen, cash-out may be cheaper.
Are HELOC rates fixed?
Usually variable and tied to an index, so the payment can move. Some lenders offer fixed-rate draw options on a portion of the line.

Estimates for education only, not a loan approval, rate quote, or commitment to lend. Actual figures depend on credit, property, program guidelines, and market conditions at the time of lock. Corie Adams · NMLS #1875205 · Network Funding, LP · NMLS ID #2297 · Equal Housing Opportunity.

In plain English

It prices a line of credit against your home, including what happens when the draw period ends.

When to use it

  • You want flexible access to funds rather than one lump sum
  • You are funding a renovation in phases
  • You want to keep a low first mortgage rate intact

Common mistakes

Budgeting only the interest-only payment
When the draw period closes, the payment jumps to include principal. Plan for it now.
Assuming the rate is fixed
Most lines are variable and move with the market.
Borrowing for depreciating purchases
A car or a vacation financed over twenty years against your home is an expensive trade.

Recommended next steps

  1. 01Compare against a cash-out refinance
  2. 02Talk With Corie

Turn the estimate into real numbers.

A pre-approval replaces the assumptions above with your actual income, credit, and the terms available to you today.

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After the math

Where this number leads.