Home Equity Line of Credit Analysis
Section A -- Equity, Limit & Eligibility
Home value
$750K
Current market value
Equity
$430K
57.3% of home value
Credit limit
$318K
At 85% max CLTV
Current LTV
42.7%
Strong
Mortgage balance
$320K
1st lien payoff
CLTV after draw
--
No draw set
Draw amount
Not set
Set draw in sidebar
Free equity left
$430K
After draw & mortgage
| Item | Amount | % of home value | Notes |
|---|---|---|---|
| Home value | $750K | 100% | Current market value (not purchase price) |
| First mortgage balance | $320K | 42.7% | Current payoff balance -- first lien |
| Raw equity | $430K | 57.3% | Home value minus mortgage balance |
| Max combined debt (85% CLTV) | $638K | 85% | Lender's maximum total secured debt |
| Max HELOC credit limit | $318K | 42.3% | Max CLTV minus 1st mortgage balance |
How lenders calculate the credit limit
Most lenders allow a combined loan-to-value (CLTV) of 80-90%. The credit limit is: (home value × max CLTV%) minus your first mortgage balance. A $750,000 home at 85% CLTV = $637,500 max combined debt. Minus a $320,000 mortgage = $317,500 HELOC credit limit. The actual amount you qualify for also depends on your credit score (720+ preferred), debt-to-income ratio, and employment history.