Updated July 2, 2026
Three homes, three CLTV caps, three borrowable amounts
| Home value | Mortgage owed | Equity | Borrowable at 85% CLTV |
|---|---|---|---|
| $300,000 | $200,000 | $100,000 | $55,000 |
| $400,000 | $250,000 | $150,000 | $90,000 |
| $500,000 | $300,000 | $200,000 | $125,000 |
Look at the middle row for a second: $150,000 of equity, but only $90,000 of it is actually reachable. That $60,000 difference is the part of your house a lender won't let you touch, and it's the single most common source of confusion in this whole process.
Equity itself is simple: what the home is worth today, minus what you still owe on it. It grows two ways, paying down the mortgage and the home appreciating, but neither of those tells you how much a lender will actually advance. That's a separate question, governed by combined loan-to-value.
Why lenders keep a cushion
An 80 to 85 percent ceiling leaves room for prices to soften without the lender's position going underwater. It also assumes a clean appraisal and a borrower who qualifies on credit and income, not just on paper equity, so the number in the results panel is a ceiling, not a promise.
Related calculators
Once you know your borrowing power, two follow-up questions usually come next: what would it cost monthly, and how does a HELOC stack up against a lump-sum loan at that amount.
HELOC Payment Calculator
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Open the calculator →HELOC vs Home Equity Loan
Compare a variable line against a fixed lump sum at the same amount and term.
Open the calculator →FAQs
Why is $90,000 borrowable when I have $150,000 in equity?
Because the lender isn't lending against your full equity, it's capping your total debt, mortgage plus new line, at roughly 85 percent of the home's value. On a $400,000 home that ceiling is $340,000 of combined debt; subtract your $250,000 mortgage and $90,000 is what's left to borrow.
What is CLTV and why does it cap my borrowing?
Combined loan-to-value is your total mortgage debt divided by your home's value. Most lenders limit a HELOC or home equity loan so that figure lands at or below roughly 85 percent.
Can I ever borrow my full equity?
Rarely. The cushion lenders keep below 100 percent CLTV is deliberate, meant to absorb a dip in home prices. Expect some of your equity to stay untapped no matter how strong your credit is.
Is this number a guarantee?
No. It's a modeling estimate, not a loan offer. Your actual limit depends on the lender's CLTV policy, your credit, your income, and a current appraisal of the property.
Ready to size the payment?
Once you know how much you can borrow, estimate what it costs each month.