$867.82
The step
The payment multiplies by roughly 1.2 the month the draw period ends, and it does so on a single scheduled date you already know. That is the risk in a line of credit, not the rate.
- Maximum line at 85% CLTV
- $210,000
- Amount drawn
- $100,000
- Still available
- $110,000
- Interest-only payment during the draw
- $708.33
- Amortising payment afterwards
- $867.82
- Interest paid during the draw
- $85,000
- Total interest
- $193,278
What this is doing
- The rate on a HELOC is variable and usually tied to the prime rate. A fixed figure here is a modelling convenience, not a forecast.
- The house secures the line. A line used for something that is not the house is still secured by the house.
- Every figure here is illustrative. It is generated from the numbers you typed using published rules, and it is not a rate quote, a pre-qualification, or an offer of credit.
The rule this page applies
A lender sets a maximum combined loan-to-value; the line is that figure less what you already owe. During the draw period the payment is interest only on what you have drawn. When the draw period ends the balance amortises over the repayment period.
Source: Standard HELOC structure
Questions people ask about this one
Why is the second payment so much bigger?
During the draw you pay only the interest, so the balance never moves. When the draw ends the whole balance has to amortise over a shorter period, and principal appears in the payment for the first time.
Can I keep it interest-only?
Not past the draw period, which is contractual. Some borrowers refinance the line at that point, which works only if there is still equity and their credit still supports it.
Is a HELOC cheaper than a cash-out refinance?
Often on closing costs, rarely on rate, and never on certainty — the rate is variable. The refinance calculator will show you the other side of that trade.
The rest of the bench
Monthly payment
Principal, interest, taxes, insurance, mortgage insurance and HOA — drawn as five separate threads, not folded into one number.
Amortisation
The full schedule, switchable month-wise and year-wise, with a running total and the crossover month called out.
Affordability
Income, debts and cash in, a defensible price out — and a plain statement of which of the three constraints is the one actually holding the number down.
Refinance
Costs divided by monthly saving is the answer most sites give, and it ignores the fact that a new 30-year term restarts the clock. Both numbers are shown here.
Extra payment
A recurring extra, a one-off lump sum, or both — against the interest they remove and the months they take off the end.
Rent vs buy
Both households start with the same cash. Whichever is cheaper in a given month invests the difference; whichever is dearer draws it down. That symmetry is the whole argument.
FHA MIP
The upfront premium, the annual premium, and the part almost every calculator gets wrong: whether it ever comes off.
VA purchase
The VA funding fee changes with the down payment and with whether it is your first use of the entitlement. Exempt borrowers pay none of it.
VA refinance
An IRRRL carries a 0.50% funding fee; a VA cash-out carries 2.15% or 3.30%. Both are shown against a true break-even.
Points
One point is one percent of the loan, paid today, for a lower rate for as long as you keep it. The only question that matters is how long that is.
DSCR
Debt-service coverage divides the rent the property brings in by what the property costs to carry. Most lenders want 1.20 or better.
Fix & flip
Acquisition, rehab, points, interest, holding costs and selling costs against the after-repair value — with the cash you actually have to put in.