Definition
The repayment period is the phase of a HELOC that follows the draw period — typically 10 to 20 years — during which you can no longer borrow and must repay the outstanding balance through fixed principal-and-interest payments. Because you're now paying both principal and interest on the full balance, monthly payments can increase sharply compared to the draw period's interest-only minimums.
Example
You owe $40,000 on your HELOC at 7.5% APR when the draw period ends. You enter a 20-year repayment period. Your new monthly payment is $322 — covering both principal and interest ($40,000 × [0.00625 × (1.00625)240] / [(1.00625)240 − 1]). This is $72 more per month than the $250 interest-only payment you were making. Over 20 years, total interest during repayment is approximately $37,280.
How It's Calculated
Repayment Period Monthly Payment = B × [r(1+r)n] / [(1+r)n − 1], where B = balance at end of draw period, r = monthly rate (annual rate / 12), n = repayment term in months.
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