How we worked it out
Updated as you change the numbers.
- Lender limit = $450,000.00 × 85% = $382,500.00.
- Less the mortgage balance $250,000.00 = $132,500.00 available.
- Payment on $50,000.00 over 180 months at 8.5% = $492.37.
Method and assumptions
The borrowing limit is the home value × the lender’s maximum combined loan-to-value (CLTV), less everything already owed on the home. The payment is a standard fixed-rate loan payment.
Questions
How much equity can I borrow?
With a $450,000 home, $250,000 owed and an 85% limit: $450,000 × 85% − $250,000 = $132,500.
Sources
Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.