Maryland HELOC Calculator
By SoFi Editors | Updated January 29, 2026
A home equity line of credit (HELOC) can be a flexible way for Maryland homeowners to borrow against the equity they’ve built in their homes. Whether you’re planning a renovation, consolidating debt, or covering unexpected expenses, understanding how HELOC payments work is an important first step before tapping into your equity.
The Maryland HELOC calculator helps estimate your potential monthly payments during both the draw and repayment periods based on factors like interest rate, credit limit, and loan term. By running different scenarios, you can better evaluate affordability, plan for future payment changes, and decide whether a HELOC aligns with your financial goals.
- Key Points
- • A HELOC functions as a revolving credit line rather than a single lump-sum disbursement.
- • Homeowners typically can access up to 90% of their home equity, though limits vary by lender.
- • The credit agreement is divided into an initial draw phase and a subsequent repayment phase.
- • Interest is only charged on the specific amount of credit currently in use.
- • The HELOC calculator can help you predict monthly payments during both phases and total interest costs.
Calculator Definitions
• HELOC Balance: This figure represents the specific amount of funds currently accessed and outstanding from the available credit line. It serves as the base amount upon which interest charges are calculated during each billing cycle.
• Current Interest Rate: This percentage applies to the outstanding balance and is often tied to a benchmark index. Because these rates are typically variable, the percentage can increase or decrease over the lifespan of the credit agreement.
• Draw Period: This is the initial phase, often lasting 10 years, during which funds can be actively withdrawn up to the set credit limit. Payments during this time are frequently limited to interest-only installments, providing lower initial costs.
• Repayment Period: Once the draw phase concludes, the credit line enters this phase where no further withdrawals are permitted. Homeowners must begin paying back both the borrowed principal and the accrued interest over a set duration.
• Monthly Interest Payment: This amount covers only the cost of using funds during the draw phase of the agreement. It does not reduce the principal balance unless the homeowner chooses to pay more than the minimum required.
• Monthly Principal and Interest Payment: This total reflects the combined cost of interest and the portion of principal required to retire the debt. These payments begin during the repayment phase and are typically much higher than previous interest-only installments.
How to Use the Maryland HELOC Calculator
To use the Maryland HELOC calculator, follow these steps:
Step 1: Enter the Amount You Plan to Borrow
Begin by entering the total amount you plan to borrow from the credit line. This balance serves as the foundation for the entire calculation and dictates the size of the initial interest charges.
Step 2: Estimate Your Interest Rate
Estimate your interest rate based on current HELOC rates. This is a primary driver of the monthly cost and will likely change over time if the agreement uses a variable structure.
Step 3: Choose the Length of Your Draw Period
Specify the number of years remaining in the phase where funds can still be accessed (typically 10). This selection determines the timeline for when the homeowner must stop borrowing and start the full repayment process.
Step 4: Specify Your Repayment Period
Input the duration allocated for paying back the total balance, which typically spans 10 to 20 years. The length of this phase directly dictates the size of the monthly principal and interest payments.
Step 5: Review Your Results
Analyze the generated payment schedule to understand both current obligations and future requirements. This output allows for the comparison of different scenarios, helping to ensure the chosen strategy aligns with long-term financial goals.
What Is a Home Equity Line of Credit?
A home equity line of credit, or HELOC, is a revolving line of credit that utilizes the equity in a home as collateral. Home equity is the difference between your home’s current market value and the outstanding balance on your home loan and any other loans you might have where your home is used as collateral.
Unlike a traditional fixed-sum financing product, a HELOC works similarly to a credit card, allowing a homeowner to withdraw funds as needed, pay them back, and withdraw them again during the draw period. However, because the home is used as security for the credit line, failure to meet the payment obligations can result in foreclosure.
A HELOC has two main phases: the draw period and the repayment period.
• During the draw period, which often lasts five to 10 years, you can borrow from your available credit line as needed and typically make interest-only or minimal payments on what you use. Use a HELOC interest-only calculator to see what payments would be based on your balance.
• Once the draw period ends, the HELOC enters the repayment period — usually 10 to 20 years — when borrowing stops and you begin repaying both principal and interest through regular monthly payments until the balance is paid off. Use a HELOC repayment calculator to see what those payments might be.
Recommended: What Is a Home Equity Line of Credit?
Home Equity Trends in Maryland
From 2020 to 2025, rising home values significantly boosted homeowner equity across the country. Nationwide, average home equity increased 142%, representing roughly $11.5 trillion in total value. This surge reflects strong housing demand, limited inventory, and years of price appreciation, which together expanded the amount of tappable equity available to many homeowners.
Maryland followed a similar upward trend, though slightly below the national average. During the same period, home equity in Maryland increased 101%, with the average homeowner holding $144,671 in equity as of 2025. This growth has strengthened household balance sheets and may give Maryland homeowners more flexibility to access equity for renovations, debt consolidation, or other financial goals, depending on lender requirements and market conditions.
Here’s a closer look at how equity has risen nationwide between 2020 and 2025.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use the HELOC Calculator Data to Your Advantage
The primary advantage of using a calculator is the ability to compare different financial scenarios before committing to a specific withdrawal. Other ways to use the HELOC calculator data to your advantage include:
Test affordability before borrowing: Use the calculator to estimate monthly payments during both the draw and repayment periods, then compare them to your current budget. This helps you confirm whether a HELOC fits comfortably into your cash flow before committing.
Run interest-rate scenarios: Since HELOCs typically have variable rates, adjust the rate upward in the calculator to see how rising rates could affect your payments. This “what-if” planning can help you decide how much to borrow and when to repay more aggressively.
Compare borrowing strategies: Change loan amounts, interest rate, or repayment terms to see how different approaches affect monthly payments. This allows you to choose a strategy that balances flexibility with long-term cost control.
Tips on HELOCs
A home equity line of credit works best when managed with intention and planning. Understanding how HELOCs function — and how your choices affect long-term costs — can help you borrow more confidently and avoid unnecessary risk.
• Borrow only what you need: While you may qualify for a large credit line, drawing only what’s necessary keeps payments manageable and reduces total interest costs over time.
• Plan for variable interest rates: Most HELOCs have variable rates that can rise with market conditions. Build flexibility into your budget so you’re prepared for higher payments in the future.
• Make principal payments early: Paying down the balance during the draw period lowers what you’ll owe later and can significantly reduce interest paid during repayment.
• Use funds for value-driven purposes: HELOCs are best used for investments like home improvements, education, or debt consolidation — not routine spending that doesn’t improve your financial position.
• Understand the repayment transition: Monthly payments often increase once the repayment period begins. Reviewing this shift in advance helps prevent payment shock.
• Compare lenders and terms carefully: Rates, fees, draw periods, and repayment structures vary by lender. Shopping around can help you secure terms that align with your budget and goals.
Alternatives to HELOCs
While a revolving credit line offers high flexibility, it may not be the ideal tool for every financial goal. Homeowners should evaluate other alternatives before committing. Below are four to consider:
Home Equity Loan
A home equity loan is a second mortgage that provides a single lump sum of cash at a fixed interest rate. It is ideal for those who have a specific, one-time expense and prefer the predictability of set monthly payments over the fluctuating costs of a variable credit line. A home equity loan calculator can help you compare the cost of this product to that of a HELOC.
Recommended: What Is a Home Equity Loan?
Home Improvement Loan
A home improvement loan is typically an unsecured financing option, meaning it does not require the home to be used as collateral. This can be a safer alternative for those who prefer not to put their property at risk, though it often comes with higher interest rates, shorter terms, and smaller available amounts than a HELOC.
Personal Line of Credit
Similar to a HELOC, a personal line of credit is revolving, but it is generally unsecured. Approval and interest rates are based primarily on the individual’s creditworthiness and income rather than the value of their home, though this typically results in higher rates and lower credit limits.
Cash-Out Refinance
A cash-out mortgage refinance involves replacing the existing primary mortgage with an entirely new, larger agreement. The homeowner receives the difference in cash, but they risk losing their original low interest rate on the first mortgage by replacing the entire debt at current market rates. When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance allows the homeowner to maintain a single monthly payment rather than managing two separate debts.
Recommended: HELOC vs. Home Equity Loan
The Takeaway
The Maryland HELOC calculator is the first step in responsible equity management. It estimates monthly payments and allows you to see if those payments fit into your monthly budget. To use the calculator, simply enter in the amount you plan to borrow, the interest rate, and the length of your draw and repayment periods. Analyze the results to help you make a smart borrowing decision.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.
FAQ
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving credit line that allows homeowners to borrow, repay, and reborrow funds as needed during a set draw period. In contrast, a home equity financing product disbursed as a lump sum provides all cash upfront. While HELOCs typically have variable interest rates, fixed-rate home equity products offer predictable monthly payments throughout the term of the agreement.
What can I use the money for from a HELOC?
Funds from a revolving credit line can be used for virtually any purpose. Common uses include major home renovations, consolidating high-interest debt, paying for education expenses, or covering unexpected medical bills. Because the credit line is flexible, it is also frequently used as a financial safety net for ongoing projects where the final costs are not yet determined.
Is a HELOC interest rate fixed or variable?
Most HELOCs feature a variable interest rate that fluctuates based on market rates. This means monthly payments can change over time. However, some lenders offer a fixed-rate option, allowing borrowers to lock in a set interest rate for a portion of their balance to provide more predictable monthly payments and protection against rising market rates.
What is the benefit of having a variable interest rate?
A variable interest rate may initially be lower than the fixed rates offered on other types of financing. If market interest rates decrease, the borrower’s monthly payments and total interest costs could also decline. Some lenders also offer low introductory “teaser” rates for a limited time, which can provide a cost-effective way to access funds for short-term needs at the start of the agreement.
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
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