How much home equity can I actually borrow?

Usually less than your full equity: lenders cap combined borrowing at a percentage of your home's value. Enter two numbers and see your real accessible amount.

Home equity

How much can I borrow?

Home value

Your best estimate. An appraisal sets the real number.

First mortgage balance

Second mortgage or HELOC balance

Lender limit (CLTV)

All loans combined as a share of value. Often 80% to 85% on a home you live in with 680+ credit; select lenders go to 90%. Around 70% on a rental. Texas homesteads cap at 80%.

Room under the 85% limit (680+ credit, primary residence)

$280,000

of $400,000 total equity (50%)

Owed today: $400,000 · 50%
Room under the limit: $280,000
Stays as cushion: $120,000
All loans after borrowing: 85% of value

What this means

Borrowing the full $280,000 would bring all your loans to $680,000, 85% of the home’s value.

With a HELOC you only draw what you need, and pay interest only on what you draw.

Check my HELOC options →Or talk it through with Randy

Prefer to talk now? Call (949) 990-6030

Estimates based only on the numbers you enter, for illustration. Not a loan offer, a rate quote, or a commitment to lend. Subject to credit approval.

Room under the 85% limit (680+ credit, primary residence)$280,000

See breakdown

The short answer: take your home's value, multiply by the lender's combined loan-to-value cap (up to 85% on a primary residence with 680+ credit, lower at lower scores), then subtract everything you still owe. What's left is the equity you can actually reach, usually well below your total equity on paper.

Why can't I borrow all of my equity?

Lenders keep a cushion so the combined debt stays safely below the home's value. That protects them if values dip and protects you from being over-leveraged. The cushion is the gap between the CLTV cap and 100%.

What are the ways to tap equity?

Three main tools: a HELOC (a reusable credit line behind your existing mortgage), a HELOAN (a fixed lump-sum second loan), or a cash-out refinance (replacing your first mortgage with a larger one). If your current first mortgage carries a low rate, a HELOC or HELOAN lets you keep it untouched. Compare both paths with the cash-out refi vs. HELOC calculator.

Illustrative example: not an offer or a rate/APR quote

A homeowner has a home worth $700,000 and owes $420,000 on the first mortgage. Total equity is $280,000 (40% of the home's value).

At an 85% CLTV cap (a primary residence with 680+ credit), combined borrowing can reach $700,000 × 0.85 = $595,000. Subtracting the $420,000 already owed leaves about $175,000 of accessible equity, not the full $280,000. Actual amounts depend on credit, income, occupancy, and the specific program.

Frequently Asked Questions

How much of my home equity can I actually borrow?

Most lenders cap total borrowing at 80% to 85% of your home's value across all loans combined (CLTV) with 680+ credit on a primary residence. The top end, 85%, applies on a primary residence with 680+ credit (lower at lower scores); select lenders go to 90%. Subtract what you still owe from that cap and the remainder is what you could typically access via HELOC, HELOAN, or cash-out refinance. Actual amounts depend on credit, income, and property type.

What is CLTV and why does it matter?

CLTV (combined loan-to-value) is everything you owe against the home (first mortgage plus any HELOC or second) divided by the home's value. It is the biggest driver of how much you can borrow and how your loan is priced. A typical cap is up to 85% on a primary residence with 680+ credit (lower at lower scores) and lower on investment properties.

Does checking my equity affect my credit score?

No. This calculator runs entirely in your browser and stores nothing. Even the 5-day HELOC pre-qualification uses a soft credit check that does not affect your score.

Is there a minimum amount I can borrow against my equity?

Most HELOC programs start around $25,000. If your available equity is below that, a cash-out refinance or another program may still work, and every lender draws the line differently, which is where a broker with 100+ lenders helps.

Should I use my home's Zestimate as the home value?

An online estimate is a fine starting point for this calculator. Lenders will use an appraisal or automated valuation when you apply, so treat the result as a planning number, not a final answer.

Calculator results are estimates based only on the numbers you enter and are for educational purposes. Enter the rate you have been quoted. This tool never assumes or suggests a rate. Subject to credit approval. Your home is used as collateral and may be at risk if you do not repay. APR, terms, and repayment structure vary by product.

Rates and program availability may vary based on the state or region in which the financed property is located. This is not a credit decision, an offer, or a commitment to lend. Program restrictions apply.

Randy Mathis | NMLS# 1516760 | Lumin Lending Inc. NMLS# 2716106 | Equal Housing Lender | License information