Our Home Equity Loan Calculator is an Excel workbook that consists of 3 different home equity calculators. They will help you answer following questions: (1) How much money can I borrow? (2) What will my monthly payment be? (3) How much home equity might I have in 5 years?
A home equity loan is basically a “second mortgage“. The terms are often used interchangeably, and any mortgage calculator can be used for a home equity loan. This calculator evaluates a fixed-rate loan, with option of extra payments (which you set up to simulate accelerated bi-weekly payments).
Home Equity
This Excel workbook is a feature-packed spreadsheet that helps you calculate your monthly payment on a fixed-rate home equity loan. It creates an amortization schedule and also allows you to either set up periodic extra payments, or manually enter prepayments in payment schedule.
How much can I borrow?
– Use the Home Equity Calculator worksheet to estimate how much money you can borrow based upon what you still owe on other mortgage and loans.
How much home equity will I have and in years from now?
Use the Home Equity Loan Calculator worksheet to answer this question, based upon current value of your home, the appreciation, and balance of one or two fixed-rate mortgage loans.
How to Use the Home Equity Calculator
The Home Equity worksheet lets you calculate the amount of equity in your home after a number of years. Although it is limited to analyzing fix-rate mortgage, it can be very handy for analyzing your current state, and making useful predictions in case you want to sell your home later.
Here are some of questions it can help you answer:
- How many years will it take to pay off the loan.
- I want to sell my home in 5 years. How much will equity will I build up by then
- What happens if the value of my home drops? Can I end up owing more than it’s worth?
It doesn’t matter whether you’ve made prepayments in the past, you just need to enter the current balance, the annual interest rate, and your monthly payment. Unlike other home equity loan calculators, this one lets you include your 1st mortgage and your 2nd mortgage. It will work for interest-only mortgages (assuming a constant rate), and if you enter monthly payment larger than the normal amortized monthly payment, it assumes that extra payment is going towards the principal.
Home Equity Line of Credit rates
The Loan Calculator worksheet is very similar to our home mortgage calculator. This is because a home equity loan is just a second standard fixed-rate mortgage, as opposed to HELOC or Home Equity Line Of Credit which is a different thing altogether. The Loan Calculator worksheet creates an amortization schedule and lets you experiment how extra payments can help you pay off loan early and save interest.
Evaluate Bi-Weekly Payment Options
The Home Equity Loan Calculator can be used for estimating interest savings from accelerated bi-weekly payment plans. Normally, making bi-weekly payments on a home equity loan or mortgage is convenience. A lender may offer you in case you want to coordinate your payments with your bi-weekly paycheck. It is also a way to consistently make extra payments to pay off your loan earlier.
