HELOC balance and term
Rate and fee assumptions
Home equity context
This is a simplified estimate. HELOC contracts vary by lender, index, margin, floor rate, cap, minimum payment rule, draw access, and repayment conversion language.
| Line item | Amount | What it means |
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Rate-shock results use the future rate entered for the repayment period. Actual payments can differ if your lender uses a different minimum payment formula, rate floor, cap, margin/index reset, rounding rule, or repayment conversion period.
Methodology notes
Draw period
Interest-only draw payment equals HELOC balance times annual rate divided by 12. The optional principal-and-interest draw payment amortizes the balance over the draw years entered.
Repayment period
Repayment payment amortizes the ending draw-period balance over the repayment years at the current rate. Payment jump compares that payment with the selected draw-period payment.
Equity and fees
CLTV equals first mortgage balance plus HELOC balance divided by home value. Total fee estimate includes origination fee plus annual fees through the draw period.
This calculator is educational and is not a loan approval, underwriting decision, appraisal, legal advice, or tax advice. Interest may or may not be deductible depending on use of funds and current tax rules. See full disclosure.
HELOC payment FAQ
What happens after the draw period?
Many HELOCs convert to principal-and-interest repayment. That can create a payment jump because the full balance must amortize over the repayment period.
Should I use the credit line or current balance?
Use the current balance plus any planned additional draw for payment estimates. The credit line limit is only used to show unused capacity.
What rate should I stress-test?
Use the rate you could afford if the index rises, or ask the lender for the fully indexed rate, floor, margin, and lifetime cap.