Question:

How long are interest only home equity line of credit payments made?

Answer:

Home equity line of credit (HELOC) payments will be interest only throughout the draw period.

Interest only home equity line of credit payments will continue for 5 to 15 years on a revolving basis. That is, you are only obligated to make interest only payments on the spent amount during the draw period, but if you like, you may be paying principal.

The more you repay, the more you can borrow again. Once the draw period expires, you will usually have a repayment period or a balloon payment will be due. During that repayment period, you are no longer allowed to make interest only home equity line of credit payments. Rather, the loan will be amortizing over the next 10 to 20 years and with even monthly payments.

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Common misspellings: mortage and morgage