HELOC Payments.

A HELOC gives you a revolving credit line secured by your home, with a limit based on your equity and the lender’s CLTV cap. You draw funds as needed during a draw period (often about 10 years) and usually pay interest only on what you borrow. After the draw period ends, you enter a repayment period where you can no longer draw and pay down the balance with larger, fully amortizing payments.

A home equity loan is a one-time lump sum at a fixed rate with a fixed payment. A HELOC is a reusable credit line, usually at a variable rate, where you borrow and repay repeatedly and pay interest only on the drawn balance during the draw period. Choose a HELOC for flexible, ongoing access and a home equity loan for a single, known expense.

During the draw period, the payment is typically interest only: the amount you have drawn multiplied by the monthly rate (annual rate ÷ 12). For example, a $50,000 balance at 8% costs about $50,000 × (0.08 ÷ 12) ≈ $333 a month. In the repayment period the payment becomes fully amortizing, covering both principal and interest over the remaining term, so it is noticeably higher.

The draw period is the window — commonly around 10 years — during which you can borrow from the line and usually make interest-only payments. Once it ends, the repayment period begins: you can no longer draw, and you repay the outstanding balance with amortizing payments, often over the next 10–20 years. Planning for that payment jump is essential.

Yes. Investors frequently use a HELOC on a primary home or another property to fund a down payment, an all-cash purchase, or a rehab, then repay the line after refinancing or selling. The appeal is on-demand capital and interest only on what you draw; the risk is a variable rate and the fact that your home secures the debt, so a delayed deal still accrues interest.