Therefore, if the homeowner failed to make payment, he may lose his home.Ī HELOC works pretty much like a credit card where the borrower is given a credit limit. The more equity a homeowner has in his house, the more money he can borrow.Ī HELOC is a secured loan using the homeowner's house as collateral.
Repayment Period - borrowers are required to repay the HELOC by regular payments which are principal and interest.Īmortization Schedule - show the HELOC amortization schedule monthly or annually.Ī home equity line of credit or HELOC is a type of credit line that allows homeowners to borrow money against their home equity. Interest Only Period - this is the draw period where the borrower is only required to pay interest on the HELOC. Interest Rate - the interest rate on the HELOC Following are the required fields for the HELOC amortization calculator to work.Ĭurrent HELOC Balance - the current balance of the HELOC After the draw period is over, borrowers are required to make principal plus interest payments which is the repayment period. The interest only HELOC calculator will calculate the monthly payments for both the draw period and the repayment period of a HELOC.ĭuring the draw period, the borrower has the option to make interest-only payments.
