During the draw period a HELOC works a little like a credit card secured by your home: you borrow, repay and borrow again up to your limit. Payments in this phase are often interest only.
Why it matters
When it ends, the line closes to new borrowing and the repayment period begins, with payments that include principal. That step up in payment is worth planning for from day one.
Where you meet it
In every HELOC offer, next to the length of the repayment period. Ask how the payment is figured in each phase.
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