How Do HELOC Payments Work? - How Much Interest I Pay
• How Do HELOC Payments ...
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With a HELOC, you have two different periods. The first 10 years of a HELOC are called the Draw Period where you only have Interest Only payments. The last 20 years are called the repayment period, where you have to pay both principal and interest.
In this video I go over how a HELOC interest payment works in both the draw period as well as the repayment period. I also share what the interest rates are on a HELOC as of today.
A HELOC is a great tool that can be used effectively no matter what the interest rates are currently. But can also be abused and leave you in financial trouble if you are not smart and disciplined with your new found access to your home equity. It is now more important then ever to know exactly how the interest is calculated on a HELOC by the lender, so you dont end up in a bad financial position.