Quick answer
A $400,000 home with $250,000 owed at an 85% cap leaves room to borrow about $90,000.
How it works
Lenders usually let your mortgage plus home equity borrowing total up to 80–85% of your home's value. Your borrowing room is that cap minus what you still owe.
Formula
Borrowing room = home value × max LTV − mortgage balance
Assumptions & limitations
- Results are rounded for display.
Frequently asked questions
HELOC or home equity loan?
A HELOC is a flexible credit line with a variable rate; a home equity loan is a lump sum with a fixed rate.
Is the interest tax-deductible?
It can be if the money is used to improve the home. Check current tax rules or ask a tax professional.