Line of Credit Calculator
Before applying for a home equity line of credit (HELOC)Footnote 1, it helps to know how much you can borrow. Provide some key details about your home and mortgage, and we’ll estimate the credit limit you could qualify for.
Find out how much you may be able to borrow- Understand what factors lenders consider when determining credit limits
- Explore loan-to-value ratio (LTV) and how it impacts your eligibility
Frequently Asked Questions
Qualifying for a line of credit typically requires a strong credit score, often around 680 or higher, and a low debt-to-income ratio (DTI), preferably 43% or less. Some lenders may also require you to have an existing checking account with them. For secured lines of credit, such as HELOCs, lenders also consider the value of your home (collateral).
The minimum payment on a line of credit varies. It is usually interest-only that’s calculated monthly on the withdrawn amount, a percentage of the outstanding balance (often 1–2%), or a flat minimum dollar amount. Depending on your terms, some lines of credit may also require a small portion of your principal each month.
Your loan-to-value ratio (LTV) compares how much you owe on a secured loan or line of credit to the value of the collateral, expressed as a percentage. For example, if you take out a $16,000 line of credit secured by a vehicle worth $20,000, your LTV would be 80% ($16,000/$20,000 x 100%). Lenders use LTV to assess risk and set borrowing limits. A lower LTV indicates more equity in your collateral, which usually results in better rates.
Additional resources
Line of credit payment calculator
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