HELOC Calculator
Home Equity Line of Credit — interest-only during the draw period, fully amortized after. The "payment jump" is real.
Payments
Current payment (interest-only)
$0
After draw period (amortized)
$0
Payment jump
$0
Available credit
$0
Utilization
—
Total interest (lifetime)
$0
Two phases
A HELOC has two distinct periods:
- Draw period (typically 10 years) — you can borrow up to the credit limit. Required payments are interest-only; you can pay more if you want.
- Repayment period (typically 20 years) — borrowing closes. The balance amortizes over the remaining term, like a regular mortgage.
The payment shock
Many HELOC borrowers don't budget for the end of the draw period. A $50k balance at 8% interest-only is $333/mo. When repayment starts, that same balance amortized over 20 years is ~$418/mo — a 25% jump overnight. If rates have also risen (HELOCs are variable), the jump can be much worse.
HELOC vs HELOAN
A HELOAN (home equity loan) is a one-shot lump sum at a fixed rate, fully amortized from day one. A HELOC is a revolving line at a variable rate. HELOCs are more flexible; HELOANs are more predictable.