Line of Credit Details
Keep your first mortgage and draw on your equity
HELOC Payments
Draw period vs. repayment period
Same balance, rate, and draw period, select a row to switch
| Repayment Period | Total Term | Draw Payment | Repayment Payment | Total Interest |
|---|
Line of Credit Timeline
Draw period vs. repayment period
How a HELOC Payment Works
A HELOC is a revolving line of credit secured by your home. During the draw period you can borrow as needed, and interest is charged only on what you've actually drawn. Many programs allow interest-only payments during the draw period.
When the draw period ends, the repayment period begins. The balance is then paid down with principal and interest over the remaining term, so the payment is typically higher than the interest-only draw payment.
HELOCs generally carry variable rates that can increase or decrease over time, subject to the terms and rate caps of the specific program. If rate certainty matters more to you than draw flexibility, a fixed second mortgage may be the better fit, see the Second Mortgage Calculator.