How Much Home Equity Can I Borrow? Formula + Examples (2026)

“How much can I borrow against my house?” is one of the most searched home-equity questions — and lenders answer it with combined loan-to-value (CLTV), not your full equity number.

Use our free home equity loan calculator for instant available equity and payment estimates, then use the formulas below to sanity-check any lender quote.

Borrowing power ≈ (Current home value × Maximum CLTV) − Existing mortgage (and other liens). Common CLTV caps are 80% or 85%. A few lenders go to 90% for strong credit — usually at worse rates.

Example A (85% CLTV): $410,000 home, $220,000 mortgage → max liens $348,500 → borrow up to ~$128,500. Example B (80% CLTV): same numbers → max liens $328,000 → borrow up to ~$108,000.

Your “equity” ($190,000 in that example) is larger than what you can tap. Lenders force a cushion so a price dip does not wipe them out.

Credit score (often 640–700+ for competitive pricing), debt-to-income ratio (commonly ≤43%), income documentation, appraisal or AVM, and recent payment history on your first mortgage.

A high borrowing-power number on paper means nothing if DTI is maxed out by car loans and cards. Pay down revolving debt first — our debt payoff calculator helps prioritize.

Amount × rate × term drives payment. Rough guide: $75,000 at 7.5% for 15 years ≈ $695/month before insurance/taxes on the first mortgage. $100,000 at 8% for 30 years ≈ $734/month.

Add closing costs (often 2–5%). Decide HELOC vs loan with HELOC vs home equity loan. If replacing your first mortgage is better, model a refinance.

1) Estimate value and pull your mortgage balance. 2) Run the calculator. 3) Check credit. 4) Get written quotes from your current servicer plus two competitors the same week. 5) Only proceed if the use of funds increases net worth or cuts higher-rate debt.

Official primer: CFPB — What is a home equity loan?.