Typically 10 Years
Access funds as needed, pay interest only on what you use. Flexible, revolving access to your line.
After Draw Period
The outstanding balance begins to amortize. Monthly payments now include principal and interest.
20-Year Term Typical
Complete repayment phase. Structured like a traditional amortizing loan until balance is zero.
Lock in a portion of your balance at a fixed rate for predictability in your payment planning.
Access up to 80–90% of your home's value depending on your equity position and credit profile.
Many programs offer zero or low closing cost options, reducing the upfront investment to open the line.
| Feature | HELOC | Home Equity Loan |
|---|---|---|
| Fund Access | Draw as needed, revolving | Lump sum at closing |
| Interest Rate | Variable (fixed options) | Typically fixed |
| Payments | Interest-only during draw | Principal + interest from day one |
| Flexibility | High — borrow, repay, borrow again | One-time disbursement |