The amount you can borrow with a home equity line of credit depends on the value of your home, how much you owe on your mortgage, and your lender’s HELOC requirements. Most lenders allow you to borrow up to 85% of your home equity with a HELOC.
For example, let’s say you have a home valued at $450,000 and currently owe $250,000 on your mortgage. First, we’ll calculate 85% of your home’s value (0.85 x 450,000), which means the maximum amount you could borrow against your home would be $382,500. However, since you haven’t paid off your home in full, you’ll then need to subtract the amount owed ($250,000) from this amount and $132,500 is the total amount you can potentially borrow.