Calculate HELOC Payments
Estimate HELOC monthly payments during draw and repayment periods. See total interest cost.
How HELOCs Work
A HELOC has two phases: the draw period (typically 5-10 years) where you can borrow and repay like a credit card, paying interest only on what you have used. Then the repayment period (10-20 years) where you repay the principal plus interest in fixed monthly payments. The transition from draw to repayment often causes payment shock — monthly payments can double or triple.
HELOC vs Home Equity Loan
HELOC: Variable rate, revolving credit, interest-only during draw period. Best for ongoing expenses or as an emergency fund backup. Home Equity Loan: Fixed rate, lump sum, fully amortizing payments from day one. Best for one-time large expenses (renovation, debt consolidation) where you want payment certainty. Fixed rates are typically 0.5-1% higher than HELOC initial rates.
The biggest HELOC risk: variable rates during a rising rate environment. A $80,000 HELOC at 6% costs $400/month interest-only. If rates rise to 10%, the payment jumps to $667/month — a 67% increase with no additional borrowing. If you take a HELOC, budget for rate increases of 2-4% above your starting rate.
