HELOC Calculator
A home equity line of credit, or HELOC, lets you borrow against your home as needed during a draw period. Then comes a repayment period, when the balance must be paid back. This shows the payment in each stage for an amount you have drawn.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
During the draw period, many lines allow interest-only payments. That payment is the drawn amount times the yearly rate, divided by twelve, and the balance stays the same.
In the repayment period, the payment is the standard loan payment on the drawn amount over the repayment years. This tool uses one fixed rate, but most lines have rates that change over time.
Worked example
With $60,000.00 drawn at 8.5%, the interest-only payment during the 10 year draw period is $425.00 a month. In the 20 year repayment period the payment becomes $520.69 a month.
Questions
Is a HELOC the same as a home equity loan?
No. A home equity loan pays one lump sum with a fixed payment. A HELOC is a credit line you draw from as needed.
Why does the payment rise after the draw period?
The balance is now repaid over a shorter time, with principal included, so each payment is larger.
Do HELOC rates change?
Many do, because they follow a market rate. Check your agreement, and try a higher rate here to see the effect.
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