HELOC Calculator · Practical guide
What Happens When the HELOC Draw Period Ends?
Borrowing stops, payments convert to principal plus interest, and the monthly bill can jump by a third or more.
At a glance
The short answer
When the draw period ends, you can no longer borrow from the line, and the outstanding balance converts to an amortizing loan over the repayment term — typically 10 to 20 years. If you carried $50,000 at 7% and paid interest-only ($291.67 a month) through a 10-year draw, the payment steps up to about $387.64 for a 20-year repayment. That 33% increase is the famous HELOC payment shock.
Interactive tool
HELOC Calculator
Enter your own values, then compare the result with the examples below.
Three ways the transition can play out
| What You Paid During the Draw | Balance at End of Draw | Repayment Payment (20 yr) | Total Interest |
|---|---|---|---|
| Interest only ($291.67) | $50,000 | $387.64 | ~$78,035 |
| $500 per month | ~$13,941 | ~$108.08 | ~$35,940 |
| Nothing | ~$100,483 | ~$779.04 | ~$136,971 |
All rows assume a $50,000 initial draw at 7% with a 10-year draw period. Paying more than the interest during the draw is the single biggest lever you have.
Why paying nothing is so costly
If your lender allows deferred or minimal payments, unpaid interest capitalizes — it gets added to the balance and itself accrues interest. At 7%, $50,000 roughly doubles in 10 years. That is how a $291.67 interest payment becomes a $779 repayment bill, more than 2.6 times higher.
How to prepare before the draw ends
First, find your exact end-of-draw date and repayment terms in your loan agreement — many borrowers are surprised by a 10-year draw that started a decade ago. Second, run the calculator above with your expected balance to preview the repayment payment. Third, if the jump strains your budget, options include paying extra principal now, refinancing into a fixed-rate home equity loan, or asking the lender about converting the balance to a fixed rate before the draw closes.
Frequently Asked Questions
Can I still borrow money after the draw period ends?
No. Once the draw period closes, the line is frozen and the remaining balance amortizes over the repayment period. To borrow again you would need to refinance or open a new line.
How much does the HELOC payment increase after the draw period?
Typically 25-50% if you paid interest-only. On $50,000 at 7% with a 20-year repayment, the payment rises from $291.67 to about $387.64, a 33% jump. Shorter repayment terms mean bigger jumps.
Can I refinance my HELOC before the repayment period?
Yes. Common options include refinancing into a new HELOC, converting to a fixed-rate home equity loan, or rolling the balance into a cash-out mortgage refinance. Each resets costs, so compare carefully.
What if I can't afford the new payment?
Contact your lender before missing payments. Many offer loan modifications, fixed-rate conversion options, or extended repayment terms. Waiting until you default severely narrows your choices since the loan is secured by your home.