What is the difference between total equity and tappable equity?

Total equity is your home value minus everything you owe on it. Tappable equity is the portion you could actually borrow against while staying under a lender LTV ceiling — typically value × LTV minus your current balance. Lenders almost never let you borrow against 100% of your equity.

What is combined loan-to-value (CLTV)?

CLTV is the total of all loans secured by the property divided by its value. If your home is worth $500,000 and you owe $300,000, your CLTV is 60%. An 80% CLTV ceiling would cap total borrowing at $400,000 — leaving roughly $100,000 of tappable equity.

Why is the default LTV set to 80%?

80% is a common ceiling for cash-out refinances and home equity borrowing on a primary residence — it tends to offer the best pricing and the widest program availability. Investment properties are often capped lower (around 70-75%), and some programs allow higher. Adjust the LTV to match your situation.

Does the value I enter determine how much I can borrow?

No. Lenders use an appraised value, not your estimate. The calculator helps you ballpark your borrowing room, but the appraisal, occupancy, credit, reserves, and program rules ultimately set the number. Treat the result as a planning estimate only.

Can business owners use home equity to fund the business?

Many do — a cash-out refinance or second lien can be a lower-cost source of capital than business financing. The qualifying side still matters: a self-employed borrower may qualify through a bank statement program rather than tax returns. A licensed officer can map the options.

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Home Equity Calculator

See how much equity you have and how much of it you could actually tap. Enter your home value, mortgage balance, and a target combined LTV — the calculator shows total equity, your max borrowable amount, and tappable equity.

By Sunrise Lending

How tappable equity works

Total equity = home value − balance owed. Tappable equity = (home value × max LTV) − balance owed. At an 80% LTV ceiling, a $500,000 home with a $300,000 balance has $200,000 in total equity but about $100,000 of tappable equity.

Calculate your home equity

Educational only. This calculator estimates home equity and borrowing room for informational purposes. It is not a loan approval, rate quote, or commitment to lend. Actual borrowable amounts depend on a lender appraisal, program LTV limits, occupancy, credit, and reserves — not the value you enter here. Consult a licensed Sunrise loan officer for your specific scenario.

Current home value

Your best estimate of today's market value

Mortgage balance

Total owed across all liens on the property

Desired max combined LTV

The loan-to-value ceiling you want to stay within. 80% is the standard default.

Enter your home value and mortgage balance above to estimate your equity.

Put your equity to work

The 60-second check-in matches you to a cash-out or equity program. A licensed Sunrise loan officer reviews before anything formal moves.

Take the check-in

Turning equity into usable capital

Equity is the share of your home you own outright — the value above what you owe. But equity on paper is not the same as cash you can access. Lenders limit total borrowing to a percentage of value, the combined loan-to-value ceiling, so the practical question is how much room sits between your current balance and that ceiling.

The two main ways to access it are a cash-out refinance, which replaces your existing loan with a larger one and returns the difference in cash, and a second lien such as a home equity loan or line, which sits behind your first mortgage. Each has different rate, cost, and CLTV treatment.

For business owners, tapping home equity is often a lower-cost source of capital than a business loan. The qualifying side still applies — and a self-employed borrower may qualify through a bank statement program rather than tax returns. The calculator sizes the opportunity; a licensed officer confirms the program and the real numbers.

Common questions

What is the difference between total equity and tappable equity?: Total equity is your home value minus everything you owe on it. Tappable equity is the portion you could actually borrow against while staying under a lender LTV ceiling — typically value × LTV minus your current balance. Lenders almost never let you borrow against 100% of your equity.
What is combined loan-to-value (CLTV)?: CLTV is the total of all loans secured by the property divided by its value. If your home is worth $500,000 and you owe $300,000, your CLTV is 60%. An 80% CLTV ceiling would cap total borrowing at $400,000 — leaving roughly $100,000 of tappable equity.
Why is the default LTV set to 80%?: 80% is a common ceiling for cash-out refinances and home equity borrowing on a primary residence — it tends to offer the best pricing and the widest program availability. Investment properties are often capped lower (around 70-75%), and some programs allow higher. Adjust the LTV to match your situation.
Does the value I enter determine how much I can borrow?: No. Lenders use an appraised value, not your estimate. The calculator helps you ballpark your borrowing room, but the appraisal, occupancy, credit, reserves, and program rules ultimately set the number. Treat the result as a planning estimate only.
Can business owners use home equity to fund the business?: Many do — a cash-out refinance or second lien can be a lower-cost source of capital than business financing. The qualifying side still matters: a self-employed borrower may qualify through a bank statement program rather than tax returns. A licensed officer can map the options.

See how much equity you can access with a Sunrise officer

The calculator estimates your borrowing room. A licensed officer confirms the program, LTV ceiling, and rate before anything formal moves.

Take the check-in Estimate refinance savings

Related resources

Equity estimates are for educational purposes only. Borrowable amounts depend on a lender appraisal, program LTV limits, occupancy, credit, and reserves — not the value entered here. Not a commitment to lend.

Sunrise Lending · Equal Housing Opportunity. Matching rules are written and reviewed by licensed mortgage professionals. All loan decisions are made by licensed mortgage professionals. Not a commitment to lend. Loan approval subject to underwriting guidelines. This is not financial advice.