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Use this calculator to determine how big a line of credit you may qualify for. The line of credit is based on a percentage of the value of your home. The more your home is worth, the larger the line of credit. Of course, the final line of credit you receive will take into account any outstanding mortgages you might have. This includes first mortgages, second mortgages, and any other debt you have secured by your home.
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Definitions
- Appraised value of your home
- This is current appraised value of your home. If it has been a few years since you purchased your home, it may be worth quite a bit more than your original purchase price.
- Mortgages you owe
- This is the total of all outstanding mortgages on your home. This should include your first mortgage, second mortgages and any other debt that is secured by your home.
- Loan to value ratio
- The loan to value ratio is the percent of your home's appraised value that your lender will allow. For example, a 75% loan to value ratio would allow you to have $75,000 in debt secured by a home appraised at $100,000. Remember - the total debt allowed includes all outstanding mortgages plus your new line of credit.
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