HELOC Calculator

A Home Equity Line of Credit (HELOC) is a revolving line secured by your home’s equity. You can draw, repay, and re-draw during the draw period (typically 10 years). After that, the balance amortizes over a repayment period (typically 20 years).

During the draw period, most HELOCs are interest-only: monthly payment = balance × (annual rate ÷ 12). During the repayment period, the balance amortizes like a regular mortgage. The calculator shows both.

Most HELOCs are variable, tied to the prime rate. When prime moves, your rate moves. Some lenders offer fixed-rate conversion options on portions of the balance — useful in rising-rate environments.

Yes — many investors use a HELOC on their primary residence to fund down payments on rentals, BRRRR rehabs, or quick cash purchases. Investment-property HELOCs (against an existing rental) are also available but rates run higher and lenders are pickier.

A HELOC keeps your existing first mortgage and adds a flexible second loan. A cash-out refi replaces your first mortgage with a new, larger one. HELOCs are faster and cheaper to set up but have variable rates. Cash-out refis lock in a fixed rate but are slower and more expensive.

Many BRRRR investors use a HELOC on their primary residence to buy and rehab the next property in cash, then refinance into a permanent mortgage and pay off the HELOC. The HELOC acts as their "cash" — no mortgage, no closing costs, no waiting for a bank.