The Equity in Your Home Calculator
Calculate how much home equity you could borrow against.
How to Calculate Your Home Equity
- Enter Your Home's Value - Input the current market value of your home.
- Enter the Mortgage Balance - Input the remaining balance on your mortgage.
- Second Mortgage Balance - If you have a second mortgage, enter the amount.
Pros and Cons of a HELOC
Like any financial solution, a HELOC has its advantages and disadvantages, depending on your situation.
Pros
- Flexibility - Borrow only what you need when you need it and repay it at your own pace.
- Lower Interest Rates - HELOCs typically have lower interest rates compared to credit cards and personal loans because they are secured by your home.
- Interest-Only Payments - During the draw period, you might be allowed to make interest-only payments, reducing your monthly obligations.
- Tax Benefits - Interest paid on a HELOC may be tax-deductible if the funds are used for home improvements.
Cons
- Variable Interest Rates - Many HELOCs have variable interest rates, which can increase over time, making your payments higher.
- Risk of Foreclosure - Since your home secures the HELOC, failing to repay can result in foreclosure.
- Fees and Costs - There may be upfront costs, annual fees, or early termination fees associated with a HELOC.
- Temptation to Overspend - Easy access to funds can lead to unnecessary spending and increased debt.
Common Questions
A HELOC (Home Equity Line of Credit) is a flexible loan that uses your home's equity to finance other things. Common reasons members take out HELOCs include home renovations, educational expenses, and debt consolidation. A HELOC with UMCU provides you access to various benefits.
- Funds you can access as often as you wish — for any reason
- A revolving line of credit with limit ranging from $10,000 - $750,000
- Utilize up to 95% of your home's equity less any current mortgage balance
- 10 year draw period followed by 15 year repayment period
- No annual fee or prepayment penalty
- Low variable interest rates
- No closing costs
- Convenient access to funds via Visa® credit card, online or mobile banking, or checks
Loan payment protection coverage available to protect your family, assets, and credit
You can utilize up to 95% of your home's equity less any current mortgage balance. Be sure to use our HELOC calculators for estimates on:
- How much equity is in your home
- How much you can borrow from your equity
- Monthly payment estimates
- How much you can save by paying off your loan ahead of schedule
Explore HELOC Calculators
UMCU may request the following information during the HELOC application process:
- Income verification
- Proof of insurance
- Current mortgage statement (if applicable)
Our HELOCs are incredibly flexible! You can use the funds for a variety of things including home repairs, home renovations, educational expenses, debt consolidation, and more!