Real estate & rental
Real Estate Home Equity Calculator
Equity in a home, the loan-to-value ratio, and how much of it a lender would let you borrow.
Result
An arithmetic tool, not financial or legal advice. Lending criteria, tax treatment and tenancy law all vary by state and change regularly. Confirm anything that affects a decision with a lender, an accountant or an attorney. Available equity is not free money: borrowing against a home secures the debt on it, and a fall in value can leave you owing more than it is worth. Lenders also use their own appraisal rather than an owner's estimate, and it is frequently lower.
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About this calculator
How much equity can I borrow?
Most lenders cap combined loan to value at 80% to 90%, so with an existing mortgage the available amount is often far less than the equity.
Does home improvement add equity?
Some does, most does not add its full cost. Kitchens and bathrooms recover more than pools and extensions typically do, and none of it is guaranteed.
The formula
equity = value - all debt secured on the property; available = value x maximum LTV - existing debt
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