In an annual equity update to past clients
Sending past clients an equity update with this calculator keeps you in touch in a useful way. Homeowners considering a renovation or a move often reply, and that's where the conversation starts.
Move-up tools · Equity
A home equity loan calculator for renovate-or-move decisions
Homeowners who've built equity often face a choice: renovate where they are, or move. This home equity loan calculator shows the fixed monthly payment on a lump-sum equity loan, the maximum available at 85% combined loan-to-value and the total repaid. It gives you a way into the 'should we stay or should we go?' conversation with past clients and neighborhood homeowners.
- Included on: every plan
- Runs in English and Spanish
- Leads arrive with all 6 results attached
How much can you borrow with a home equity loan?
Many lenders cap the combined loan-to-value, meaning the first mortgage plus the equity loan, at around 80–85% of the home's value, depending on credit and the lender. This calculator uses 85% CLTV to estimate the maximum available and shows the fixed payment on the amount entered.
When you'd send it
When to put the Home Equity Loan Calculator in front of people
When a seller is weighing 'renovate or sell'
Show the cost of borrowing for a renovation next to the seller net sheet for a sale. The comparison helps them choose without you pushing either way.
For move-up buyers needing a down payment
Some homeowners use an equity loan to fund a down payment on the next home. The fixed payment is easier to plan for than a variable HELOC.
What your visitor sees
The homeowner enters the home value, current mortgage balance, equity loan amount, rate and term. They see the monthly payment, loan amount, maximum available at 85% CLTV, total interest, total repaid and the combined loan-to-value.
The lead you receiveA homeowner thinking about their equity
You get the Home Value they assumed, the Current Mortgage Balance, the equity Loan Amount, Monthly Payment, Max Available (85% CLTV) and Combined Loan-to-Value. Their home value assumption is a natural reason to offer a market analysis.
Follow-up that works
- Offer a free market analysis to check the home value they entered.
- Ask what the equity is for: a renovation, a move or something else.
- If a move is possible, run a seller net sheet so they can compare.
- What your visitor enters
- Home Value
- their input
- Current Mortgage Balance
- their input
- Equity Loan Amount
- their input
- Interest Rate (%)
- their input
- Loan Term (years)
- their input
- What they see (and what you receive)
- Monthly Payment
- their result
- Loan Amount
- their result
- Max Available (85% CLTV)
- their result
- Total Interest
- their result
- Total Repaid
- their result
- Contact and source
- Name, email, phone
- with consent
- Page and campaign
- UTM · referrer
You used $520,000 for your home's value. Recent sales on your street suggest it could be a bit higher. Want me to put together a quick market analysis before you talk to your lender?
Before and after
Your page before and after this calculator
BeforeAfter
Before: Annual 'happy home anniversary' card
- Nice, but nothing to act on
- No insight into the client's plans
- No reason to reply
After: Your equity, in numbers
- A calculator past clients actually use
- Their home value and plans arrive with the lead
- A natural opening for a market analysis
Reading the results
What each result means for your follow-up
The same figures your visitor sees arrive in your lead record. Here's how to read the ones that matter.
- Max Available (85% CLTV)
- The largest equity loan that keeps total borrowing at 85% of the home's value. Actual limits depend on the lender and the borrower's credit.
- Combined Loan-to-Value
- First mortgage plus equity loan, as a share of value. A high figure leaves less cushion if values fall.
- Monthly Payment
- The fixed principal and interest on the equity loan. It's added to the existing mortgage payment.
What can go wrong
Mistakes that cost agents the lead
Overstated home values
Homeowners often enter an optimistic value, which inflates the available equity. Offer a market analysis to ground the number.
Implying a recommendation to borrow
Show the costs and let the homeowner decide with their lender. Never suggest taking on debt to fund a purchase or renovation.
Using 85% as a universal rule
CLTV limits vary by lender, credit and property. Present 85% as an assumption.
Inside the Home Equity Loan Calculator
What your visitor enters (5)
Home & Equity
- Home Value
- Current Mortgage Balance
- Equity Loan Amount
Loan Terms
- Interest Rate (%)
- Loan Term (years)
Field names are shown as they appear in the calculator's English interface.
What they see (and what you receive) (6)
- Monthly Payment
- Loan Amount
- Max Available (85% CLTV)
- Total Interest
- Total Repaid
- Combined Loan-to-Value
Definitions shown in the calculator (9)
- Home equity loan
- A fixed-rate loan secured by your home, paid out as a lump sum and repaid in equal monthly payments over a set term. It sits behind your first mortgage as a second lien. Unlike a HELOC, the amount, rate and payment are fixed from the start, which is how this calculator treats it.
- Home equity
- The market value of your home minus what you still owe on it. With the defaults, a $450,000 home and a $240,000 mortgage balance leave $210,000 of equity. Lenders let you borrow against only part of it, since they keep a cushion in case the home’s value falls.
- Combined loan-to-value (CLTV)
- All loans secured by the home, the first mortgage plus the new equity loan, divided by the home’s value, as a percentage. Many lenders cap it, commonly at 85%, which is the cap this calculator uses. A higher CLTV means less equity cushion and usually a higher rate or a smaller approval.
- Max available
- The largest equity loan that keeps combined borrowing within 85% of the home’s value: 85% of the value minus the current mortgage balance. With the defaults, that is $382,500 minus $240,000, or $142,500. A lender’s actual limit depends on its own cap, the appraisal, and your credit and income.
- Second mortgage
- A loan secured by a home that already has a first mortgage. If the home is sold or foreclosed, the first mortgage is paid before the second, so second liens carry more risk for the lender and usually a higher rate. A home equity loan is one kind of second mortgage.
- Interest rate
- The annual percentage the lender charges on the unpaid balance, not including fees. A home equity loan’s rate is fixed, so the payment never changes. This calculator divides it by 12 to get the monthly rate used in the payment formula.
- Loan term
- The number of years over which the equity loan is repaid in equal monthly payments. A shorter term raises the payment but cuts total interest; a longer term does the opposite. The term of the equity loan is independent of the years left on your first mortgage.
- Total interest
- The interest paid over the full term if the loan runs to maturity with regular payments: total repaid minus the loan amount. It does not include closing costs or fees, which some lenders charge on equity loans and which raise the true cost of borrowing.
- Closing costs
- Fees charged to set up the loan, such as appraisal, origination, title and recording fees. Some lenders cover them or roll them into the loan; others charge them in cash. This calculator does not include them, so compare lender offers on both rate and fees.
Calculator disclaimer
Estimates only. The amount you can borrow depends on your home's appraised value, existing mortgage balance and lender limits. Confirm rates and terms with a licensed lender.
Calculator results are estimates for illustration, not Loan Estimates, pre-approvals or offers of credit.
Questions by topic
Home Equity Loan Calculator: questions agents ask
How is the maximum available calculated?
85% of the home value minus the current mortgage balance. If the result is negative, there's no available equity at that limit.
Is the payment fixed?
Yes. The calculator assumes a fixed-rate, fully amortizing loan over the term entered, which is typical for home equity loans. HELOCs work differently. See the HELOC calculator.
Does it include closing costs on the equity loan?
No. Some lenders charge closing costs or fees on equity loans. Homeowners should ask their lender and add them to their plans.
When is equity a good reason to call a past client?
When it's useful to them, such as an annual equity update or a change in values on their street. Pair the calculator with a market analysis offer rather than a sales pitch.
Should I compare renovating with moving?
If the client asks, yes. Show the equity loan's cost next to a seller net sheet and the cost of the next home. The decision is theirs, and the numbers make it easier.
Is a home equity loan the same as a second mortgage?
A home equity loan is a type of second mortgage: a lump sum secured by the home, behind the first mortgage. Lenders explain the terms and risks.
Which plan includes it?
Every plan. The home equity loan calculator is one of the mortgage tools on the free Agent plan and above.
Where does it work best?
Past-client newsletters, 'what's my equity?' pages and move-up content. It's a retention tool as much as a lead tool.
Does it run in Spanish?
Yes. It runs in English and Spanish.
Pairs well with
Calculators that pair well with this one
Put the Home Equity Loan Calculator on your next listing
Included on every plan, including the free Agent plan. No card needed.