Home equity is the estimated property value minus debt secured by the property. A lender usually will not let you borrow all of that equity. An available-line estimate also depends on an allowed combined loan-to-value ratio, your other qualifications, and program rules.
Estimated equity is not the same as approved borrowing power.
Start with a defensible value
A public valuation estimate is a starting point, not a lender-approved appraisal. Use a reasonable estimate and test a lower value as well. A value change can materially change the amount you could borrow.
Include every secured balance
Count the first mortgage and other secured loans. A lender may evaluate an existing or proposed line by its limit rather than only its drawn balance, depending on the program. Ask how each lien enters the calculation.
Calculate an illustration
For a $600,000 property, an assumed 80% combined limit gives $480,000 of total secured borrowing. With a $350,000 first mortgage and no other liens, the difference is $130,000 before fees and underwriting. The 80% figure is an example, not an offer or universal limit.
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CFPB: Home equity lines of credit booklet ↗General education, not an approval or personalized recommendation. Loan terms and eligibility vary. Our editorial standards.