Start with CLTV
Combined loan-to-value divides the first mortgage plus the new lien by the current property value. Lenders set their own limits and may use a different valuation.
Fixed second-lien analysis
Measure proceeds, CLTV, fee-adjusted cost and the effect on home equity.
A home equity loan delivers a lump sum and usually uses a fixed payment. This model keeps the first mortgage visible, tests a lender CLTV ceiling, prices fees three ways and tracks both liens over time.
Decision guide
How to evaluate a home equity loan
The payment is only one part of the decision. The new debt sits behind the first mortgage, reduces the equity cushion and puts the home at risk if payments cannot be made.
Reconcile proceeds
A requested loan is not always the cash received. Origination charges, appraisal costs and other fees may be paid upfront, deducted or added to principal.
Match term to purpose
Long repayment terms reduce the monthly payment but can outlast the purchase being financed. Compare total interest and keep a realistic payoff plan.
Your home is collateral
Missed payments can lead to foreclosure. Keep an emergency reserve and test the combined first- and second-lien payment against income.
Tax treatment varies
Do not assume interest is deductible. Use-of-funds, itemization and current tax rules matter; consult a qualified tax adviser.
APR needs the disclosure
The fee-adjusted APR here is a model. Compare the lender's Loan Estimate or applicable disclosure, rate, cash received and total payments.
Simple by design
Three steps to a clearer number.
Enter your details
Use realistic values in each field. You can change them anytime.
Calculate instantly
The formula runs locally, so there is no account or waiting time.
Use the result
Treat the answer as a practical estimate for your next decision.