I've never been sure if I'm "good with numbers"; except if those numbers happen to incorporate the compounding of interest, principal, and early pay-off amounts that are an important part of loan calculations, in which case there's absolutely no question that I reek. Pre-internet, had I been gutsy enough to attempt a comprehension of these intricate elements my hair would have landed in a pile besides my desk. Not being a fan of premature, self-induced baldness, I was never more enthusiastic than when I learned innumerable websites offering access to a free HELOC calculator.

My excitement soon waned when I further realized that a HELOC (Home Equity Line of Credit Calculator) is nearly as sophisticated as the numbers it seeks to simplify. Before you can even start using a HELOC payment calculator, the following needs to be determined:

1) Is a home equity loan, or line of credit more beneficial?

2) Can I even borrow from the equity in my home?

3) Is the loan tax deductible?

4) Will the line of credit be used for remodeling? If so:

It also needs to be identified simply how much is needed to cover the entire cost of the remodel, which, by the way, necessitates additional calculations for materials; labor; permits; fees; as well as unexpected issues, both those that are genuine, and those unexpectedly "discovered" by unscrupulous contractors, who, by the way, make the further necessity to calculate how much is necessary to pay for the job twice when said dishonest contractors, and/or their equally unscrupulous counterparts flub up the job because they're more interested in calculating the amount of money they'll get, than if they have the needed skills.

5) Which rate/points combination is most suitable for your past, current, future, projected, expected future, and currently projected future economic status?

6) You must also decide the most effective way to pay down the loan, which, by the way, needs an additional set of calculations, after making the initial calculations to find out how much you can borrow in relation to an inexpensive payment, to determine how much an additional payment should be, if you can afford an additional payment, which appears kind of silly because you would think that you'd just make the maximum payment you can afford to pay down the loan faster, and how the extra payments will affect the overall terms of the loan to determine whether making additional payments is cost efficient; in which case reverting to just making the maximum payment you can afford wouldn't make sense.

7) What method of amortization is preferable?

ARM: Calculations should additionally be included in the original calculations to determine the effect on your budget when the flexible rate you've so cleverly chosen adjusts and completely obliterates your earlier calculations.

I have yet to determine if a HELOC payoff calculator is capable of a singular method for auto-adjusting loan calculations to make a continuous projected time line for payments, and their amounts; or if separate calculations has to be made for the initial loan, and periodic adjustments meant to the adjusting payments, and their adjusted dates, produced by the adjustable rate loan.

HELOC calculator