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Calculate draw-period payments and repayment-phase costs for a US Home Equity Line of Credit. Model interest-rate changes and see your total borrowing cost across both phases.
A Home Equity Line of Credit (HELOC) works in two phases. During the draw period (typically 10 years), you can borrow up to your approved credit limit and make interest-only payments on the outstanding balance. During the repayment period (typically 10 to 20 years), the line closes and you repay the remaining principal plus interest. HELOCs carry variable rates tied to the prime rate, so payments can rise if the Fed raises rates. Lenders typically allow borrowing up to 85% of your home's appraised value minus the outstanding mortgage balance. Enter your home value, mortgage balance, desired loan amount, current interest rate, draw period, and repayment period to see your approved credit limit, monthly interest-only draw payments, monthly repayment payments, and total interest cost across both phases.
A typical scenario using default values
{
"home_value": 400000,
"mortgage_balance": 200000,
"desired_loan_amount": 50000,
"interest_rate": 8.5,
"draw_period_years": 10,
"repayment_period_years": 20
}