The easiest way to determine how much you could potentially borrow with a home equity loan is to divide the outstanding balance on your mortgage by the home’s current value. The resulting number is your loan-to-value (LTV) percentage. Generally, lenders might let you borrow up to 80% of your home’s value, which means you’ll need more than 20% equity to benefit from a home equity loan. However, this can vary based on the lender you choose. Say your home is worth $250,000, and you owe $150,000 on your mortgage loan. When you divide $150,000 by $250,000, you get 0.60 which represents a 60% LTV. If your lender approves borrowers up to 80% LTV, you may be able to borrow another 20% against your home’s value, or a total loan amount of $50,000. In total, you’ll owe $200,000, which equals 80% of your home’s $250,000 value.