GUIDE深度 · Deep dive
How HELOC Payments Change
A HELOC is not a fixed-payment loan. During the draw period you usually pay interest only, so the payment moves with the balance and rate; when repayment starts, principal amortizes and the payment can double.
Two phases
Draw period: you can borrow and repay repeatedly, usually interest-only; the balance does not go down.
Repayment: draws stop and principal amortizes, often over 10 to 20 years.
Variable rate and balloons
Rates often track Prime, so increases raise the payment quickly.
Some HELOCs require a balloon at the end of the draw period; confirm this before signing.
FAQ
Does interest-only pay principal?
No; principal falls only in repayment or with extra payments.
Can I pay a HELOC early?
Usually yes, but check for a prepayment penalty and annual fees.