Can You Repay A Heloc During The Draw Period. If you were approved for a 15000 HELOC draw period but only drew 10000 before it. The minimum payment during the draw period is interest-only.
Once the draw period ends its typically followed by a repayment period for a set term. End-of-Draw Date Repayment Period The date at which the draw period ends on a HELOC and the beginning of the repayment period. Draw Period The specified time when borrowers can access money in their HELOC.
When you pay off part of the principal those funds go back to your line amount.
The draw period is set by your lender and usually lasts about 10 years. Typically you are only required to pay off the interest on your HELOC during the draw period. HELOCs tend to have variable interest rates while home equity loans are fixed. If you pay your HELOC down completely during the draw period then youll still have your line of credit open to use until the draw period ends.
