During the draw period
You can generally spend up to your credit limit at any time, for example with special checks or a card linked to the line. Some plans require a minimum draw each time, a minimum balance or an initial advance when the line is set up.
Try your own figures in the HELOC calculator →
When the draw period ends
You can no longer borrow, and the plan moves into repayment. The lender may set a schedule to repay the full balance. In some plans the entire balance is due as soon as repayment begins.
What the disclosures must say
For a home equity plan, Regulation Z requires the creditor to disclose the length of the draw period and of any repayment period. If the repayment length depends on the balance left, the disclosure has to say so.
Interest only or not
If your draw-period minimum covers interest only, the balance at the end of the draw period is the same as what you borrowed. Set the payment type to principal and interest in the calculator to see how much smaller that balance and the later payment become.
Variable rates
The rate on a HELOC usually varies. Some plans let you move part or all of the balance to a rate that does not vary, which the bureau describes as usually higher but more predictable. The calculator holds one rate for the whole plan, so read the sensitivity line next to it.
Try both periods
Enter the periods from the plan's disclosures. The line «Change when the draw period ends» is the number to look at first.