HELOC payment calculator

The amount of equity you can borrow depends on your home's current value and how much you still owe on your mortgage. Most lenders typically allow you to access up to 85% of your home's value, depending on your credit profile and other factors, minus your existing mortgage balance.

To qualify for a HELOC, you'll also need to meet certain requirements, including:

• A strong credit score
• A consistent payment history
• A manageable debt-to-income (DTI) ratio
• Sufficient equity available in your home

With Figure, you may be able to borrow up to $750,000^{6: Navigates to numbered disclaimer}, depending on your qualifications and the amount of equity you have.

Homeowners can tap into their home equity for a wide range of needs—but the key is choosing a financing option that fits your goals and repayment capacity. Common uses include:

• Home Improvements: Upgrade your kitchen, build a home office, or take on renovation projects that add value.
• Debt Consolidation: Replace high-interest credit cards or personal loans with a potentially lower-rate option^{7: Navigates to numbered disclaimer}
• Emergency Expenses: Handle surprise costs like medical bills, car repairs, or urgent home maintenance.
• Life Events: Pay for major milestones such as education, family planning, or retirement planning.
• Business Funding: Access capital to start or expand a small business without needing a separate business loan.

A HELOC offers flexible access to your equity, giving you control over how and when you use your funds—whether for planned goals or unexpected challenges.

Several factors work together to calculate your monthly HELOC payment, and some are reflected in the fields you enter into the HELOC payment calculator:

• Loan Amount: The amount you choose to borrow directly impacts your monthly payment. A higher loan amount typically means a higher monthly cost.
• Interest Rate (APR): Your rate is based on multiple factors, including your credit score and market conditions. The calculator estimates your APR to help you understand your potential payment.
• Credit Score: Strong credit can help you qualify for a more favorable rate, reducing your monthly payment. Lower credit may result in a higher rate and increased monthly costs.
• HELOC Term: The length of your loan term determines how long you'll repay the borrowed amount. A shorter term means higher monthly payments but less interest paid over time, while a longer term spreads payments out and may reduce monthly costs.
• Estimated Property Value & Current Mortgage Balance: These fields help assess how much equity you have available to borrow against. While they don't directly set your payment, they influence your eligibility and the loan amount you're able to secure.
• Additional Draws: If you choose to access more funds later on, those new draws may carry a different interest rate than your original loan. The calculator focuses on the initial draw, but it's important to understand how future borrowing could affect your overall payments.

Use the HELOC calculator to explore how different loan amounts, credit scores, and terms affect your estimated monthly payment, so you can make a more informed decision.

Loan-to-Value (LTV) is a ratio that compares the amount you owe on your home to its current market value. Lenders use LTV to assess risk and determine how much equity you have available to borrow against.

How to Calculate LTV
To calculate your LTV, use this formula:

LTV = (Total Mortgage Balance ÷ Estimated Property Value) × 100

For example, if your home is worth $400,000 and you owe $240,000 on your mortgage:

LTV = (240,000 ÷ 400,000) × 100 = 60%

A lower LTV generally means you have more equity in your home and may qualify for better loan terms. Most lenders allow you to borrow up to 85% LTV, depending on your credit profile and other factors.

HELOC vs cash-out refinance

• Both options let you pay off and replace your current first mortgage, but they differ in structure and flexibility. With the Figure Cash-Out Refi HELOC^{*: Navigates to bottom disclaimer}, your full loan amount is funded upfront (minus any fees) with fixed^{4: Navigates to numbered disclaimer} or variable^{8: Navigates to numbered disclaimer} interest rate options, and the line remains open—letting you draw again as you repay, with each new draw receiving its own new rate. A traditional cash-out refinance offers a one-time lump sum at a fixed rate through a closed-end mortgage. It doesn't allow future draws and usually involves higher closing costs and a longer time to fund.

HELOC vs home equity loan

• A home equity loan provides a one-time lump sum at closing with fixed monthly payments and a fixed interest rate—making it ideal for single, large expenses. In contrast, the Figure HELOC offers more flexibility: you receive the full loan amount upfront, but unlike a traditional loan, it functions as a revolving line of credit. As you repay the principal, you can draw funds again during the draw period^{4: Navigates to numbered disclaimer}. This structure makes Figure's HELOC a strong choice for ongoing or evolving needs like home renovations, tuition, or debt consolidation—all with the added benefit of a fast, fully digital application process.