HELOC Payment Calculator to
Calculate Interest Only Payment

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Explains what a "HELOC" is and how it differs from a home equity loan, and helps you to determine the payment amounts before and after the draw period.

This free online HELOC Payment Calculator will calculate the monthly interest-only HELOC payment given your current balance, plus calculate the principal and interest payment that will take effect once the draw period expires.

If you would like to calculate the size of the home equity line of credit you might qualify for, please visit the HELOC Calculator.

What is a HELOC?

In case you're not familiar with the acronym, HELOC stands for Home Equity Line of Credit. A HELOC is similar to a revolving charge account, where you can borrow from the line of credit as you need cash over the course of what's known as the draw period.

During the draw period you will usually have the option of making interest-only payments. Later, at the end of the draw period (usually 5-10 years), your monthly payment will increase to include principal repayments.

The size of the home equity line of credit you may qualify for is typically based on the appraised value of your property, the amount you owe on your property (total of 1st mortgage, 2nd mortgage, home equity loan), and the loan to value (LTV) the lender is willing to extend to you.

HELOC versus Home Equity Loan

Just to be clear, a Home Equity Line of Credit is not the same thing as a Home Equity Loan. A Home Equity Loan is more like a traditional mortgage in that you borrow a specific amount and make fixed monthly payments over a fixed period of time.

The main advantages of a home equity line of credit are that most lenders don't charge any closing costs, and you only pay interest on the portion of the line of credit your are using -- not on the total amount of the line of credit you qualify for. And, unlike revolving charge accounts, you may also be able to deduct the interest payments.

HELOC Disadvantages

One disadvantage to home equity lines of credit is that you will usually pay a higher interest rate than you would for a home equity loan.

Also, because a home equity line of credit is similar to a revolving charge account, if you're not careful you can get into the same kind of debt trouble that credit card abuse can lead to.

With that, let's use the HELOC Payment Calculator to calculate the monthly interest-only HELOC payment, as well as calculate the principal and interest (PI) payment that will take effect once the draw period expires.

Calculate Interest Only HELOC Payment
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Instructions: Enter the current balance of your home equity line of credit, the annual percentage rate, and the number of years you will be making principal and interest payments once the draw period expires, then click the "Calculate Interest Only HELOC Payment" button.

Mouse over the blue question marks for a further explanation of each entry field. More in-depth explanations can be found in the glossary of terms located beneath the HELOC Payment Calculator.

Help Current line of credit balance ($):
Help HELOC rate (%):
Help Number of years to calculate PI payment:
Help Monthly interest-only HELOC payment:
Help Monthly principal and interest HELOC payment:

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HELOC Payment Calculator Glossary of Terms

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Current line of credit balance: The current balance of your home equity line of credit. If you want to calculate the interest-only payment for the total line of credit you qualified for, enter that amount instead.

HELOC rate: The annual interest rate of the home equity line of credit.

Number of years to calculate PI payment: If you would like the HELOC payment calculator to calculate the principal and interest payment that will begin once the draw period is over, enter the number of years to repay the line of credit.

Monthly interest-only HELOC payment: This is your monthly interest-only home equity line of credit payment.

Monthly principal and interest HELOC payment: This is the principal and interest payment that will take effect once the draw period has expired.

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