Calculator Inputs
Optional: extra amount to pay toward principal
Results
Balance Paydown Over Time
About This Calculator
Understanding HELOC Payoff
A Home Equity Line of Credit (HELOC) works like a credit card secured by your home. During the draw period (typically 10 years), you can borrow against your credit limit and make interest-only payments. After the draw period ends, you enter the repayment period where you must pay off the principal plus interest.
Payoff Strategies
- Make more than the minimum payment during the draw period
- Add extra principal payments to reduce the balance faster
- Consider refinancing to a fixed-rate home equity loan
- Pay off highest-interest debts first
Frequently Asked Questions
What is a HELOC?
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home equity. You can borrow up to your credit limit during the draw period and repay with interest.
How is HELOC interest calculated?
HELOC interest is typically calculated daily based on your outstanding balance and the variable interest rate, then charged monthly. Rates are usually tied to the prime rate plus a margin.
Can I pay off my HELOC early?
Yes, most HELOCs allow early repayment without penalty. Paying extra toward principal reduces your balance and interest costs. Check your agreement for any prepayment terms.