A Home Equity Line of Credit. A revolving credit line secured by your home, with two phases: an interest-only 'draw period' (commonly 10 years) and an amortizing 'repayment period' (commonly 20 years). Variable rate tied to prime.

Why is the repayment-phase payment so much higher?

During the draw period you pay only interest, not principal. When repayment starts, the full balance has to be amortized over the remaining term — at most HELOC rates, the monthly payment doubles or more.

When does a HELOC make sense vs a home equity loan?

HELOC: ongoing or unpredictable expense (multi-stage renovation, college tuition over years). Home equity loan: lump-sum need with fixed payments (one-time renovation, debt consolidation). HELOCs have rate risk; home equity loans lock in.

HELOC Calculator

HELOC payment math. See your interest-only draw-period payment and the much higher amortizing payment that kicks in when the draw period ends.

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