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HELOC payment calculator
A HELOC costs almost nothing during its interest-only draw period — then the payment jumps when repayment begins. This calculator shows both, so the second number doesn't surprise you years from now.
Draw period vs repayment period
A HELOC has two phases. During the draw period — usually 10 years — you can borrow and repay freely, and the minimum payment is interest-only, which keeps it low.
When the repayment period begins, you can no longer draw. The outstanding balance amortizes over the remaining term, so the payment can more than double overnight.
- Draw period: often 10 years, interest-only minimum payment.
- Repayment period: often 20 years, principal and interest.
- Rate: variable, tied to prime, so both numbers move with the market.
- Fixed alternative: a home equity loan locks a predictable payment.
Because the rate is variable and tied to prime, both numbers move with the market. A fixed home equity loan trades that flexibility for a predictable payment — size one in the home equity loan calculator and compare before you decide. To fold the draw into your full housing cost, use the monthly payment calculator, or check today's Michigan rates for context.
Frequently asked questions
How is a HELOC payment calculated?
During the draw period, most HELOCs charge interest only on the amount you've borrowed — so the payment is your balance times the monthly rate. When the repayment period begins, the balance amortizes over the remaining term, which raises the payment sharply because you're now paying principal too.
Why does my HELOC payment jump after the draw period?
The draw period (often 10 years) is interest-only; the repayment period (often 20 years) requires principal and interest. A $50,000 balance that cost interest-only during the draw can more than double in payment once repayment starts — plan for it, because the rate is also variable.
Are HELOC rates fixed or variable in Michigan?
Variable — tied to the prime rate, so your payment moves with the market. Some Michigan credit unions offer fixed-rate lock options on portions of the balance. Read our Michigan HELOC guide for how draw and repayment periods work.