Model interest-only payments during the draw period, fully amortizing payments during the repayment period, and estimate your maximum HELOC borrowing limit based on home equity.
• Draw Period (Interest-Only): During the initial draw phase, payments cover only accrued monthly interest without reducing the principal balance.
• Repayment Period (P&I): The line of credit closes to new draws, and the principal is amortized into fixed monthly payments over the remaining term.
$333.33
Interest-Only / Mo$477.83
Amortized P&I / MoReview interest-only draw payments followed by principal amortizing repayment.
| Year | Phase | Interest | Principal | Ending Balance |
|---|---|---|---|---|
| Year 1 | Draw (Interest-Only) | $4,000.00 | $0.00 | $50,000.00 |
| Year 2 | Draw (Interest-Only) | $4,000.00 | $0.00 | $50,000.00 |
| Year 3 | Draw (Interest-Only) | $4,000.00 | $0.00 | $50,000.00 |
| Year 4 | Draw (Interest-Only) | $4,000.00 | $0.00 | $50,000.00 |
| Year 5 | Draw (Interest-Only) | $4,000.00 | $0.00 | $50,000.00 |
| Year 6 | Repayment (P&I) | $3,934.99 | $1,798.92 | $48,201.08 |
| Year 7 | Repayment (P&I) | $3,785.68 | $1,948.23 | $46,252.84 |
| Year 8 | Repayment (P&I) | $3,623.98 | $2,109.94 | $44,142.91 |
| Year 9 | Repayment (P&I) | $3,448.85 | $2,285.06 | $41,857.85 |
| Year 10 | Repayment (P&I) | $3,259.19 | $2,474.72 | $39,383.13 |
| Year 11 | Repayment (P&I) | $3,053.79 | $2,680.12 | $36,703.01 |
| Year 12 | Repayment (P&I) | $2,831.35 | $2,902.57 | $33,800.44 |
| Year 13 | Repayment (P&I) | $2,590.43 | $3,143.48 | $30,656.97 |
| Year 14 | Repayment (P&I) | $2,329.53 | $3,404.39 | $27,252.58 |
| Year 15 | Repayment (P&I) | $2,046.96 | $3,686.95 | $23,565.63 |
| Year 16 | Repayment (P&I) | $1,740.95 | $3,992.96 | $19,572.67 |
| Year 17 | Repayment (P&I) | $1,409.54 | $4,324.38 | $15,248.29 |
| Year 18 | Repayment (P&I) | $1,050.61 | $4,683.30 | $10,564.99 |
| Year 19 | Repayment (P&I) | $661.90 | $5,072.01 | $5,492.98 |
| Year 20 | Repayment (P&I) | $240.93 | $5,492.98 | $0.00 |
Estimate your maximum home equity line of credit amount based on property value and lender CLTV limits.
$230,000.00
Your current loan-to-value ratio: 41.7%There are other factors that may affect the home equity line of credit amount you qualify for, such as your credit history. Applicants with a credit score below 630 may not qualify.
Your other debts can also affect the amount you are eligible for. In general, lenders typically won't approve a loan for borrowers with a debt-to-income (DTI) ratio of 43% or higher.
A Home Equity Line of Credit (HELOC) is a revolving credit facility secured by your home's equity. Unlike a standard mortgage or fixed home equity loan, a HELOC functions much like a credit card: you are approved for a maximum borrowing limit and can draw and repay funds as needed during the draw period.
During this phase, you can borrow funds up to your credit limit. Most lenders only require interest-only monthly payments on the active balance drawn, keeping initial out-of-pocket costs low.
Once the draw period ends, the line of credit closes. You can no longer withdraw funds, and the outstanding balance is amortized into monthly principal and interest payments until paid off.
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