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How a home equity loan payment works
A home equity loan is a fixed lump sum — a second mortgage — repaid in equal monthly installments over a set term. Because the rate is fixed, your payment never changes, which makes budgeting simple. This calculator uses the standard amortization formula: the same math your lender uses.
Deciding between a fixed loan and a flexible line of credit? Read HELOC vs. home equity loan, and check how much you can borrow with the home equity calculator.
Frequently asked questions
Is a home equity loan payment fixed?
Usually yes. Most home equity loans carry a fixed rate, so the monthly payment is the same for the life of the loan.
What term should I choose?
A shorter term means a higher payment but far less total interest; a longer term lowers the payment but costs more overall. Try a few in the calculator.