All Forum Posts by: Hilary Braun

So for example, to calculate the payment on a HELOC of $300k, you would multiply the APR by the loan amount and then add that to the principal and divide by 360? I guess the first step is where I'm getting mixed up. What is the actual math on finding the interest owed over the life of the loan?

I followed up with my lender too and she told me this is an interest only loan, which makes even less sense to me. Full transparency, the loan amount is $325k and the payment quoted is about $2500. Thanks for both of your replies.

Another question: is there a reliable P&I HELOC calculator that I can use?

Hello everyone!

I'm beginning to scale my rental portfolio and using funds from a HELOC to cover cash to close on my properties. I was using HELOC payment calculators online to gauge the cost of the cash to close per property, but after nearing close on my HELOC, I've learned that I was close to a hundred short on my calculations. The payment for my HELOC was explained to me as:

So the payments on the amount you withdraw at the beginning will be based on a calculation of the interest on the loan + 1/360th of the balance every month.

So your interest would be your balance times the APR and then divide that by 12 to get your monthly interest. You also take your current balance and times that by 1/360th to get your principal. Add those together to get your payment.

I'm having trouble understanding this explanation - can anyone with knowledge in this area jump in to clarify?

Thanks!!