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U.S. Bank End of Draw

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U.S. Bank logo

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What is the end of draw period on my home equity line of credit? A home equity line of credit, or HELOC, is a line of credit secured by your home, giving you access to available funds for your next major project or purchase.

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Animated pictures of homes, hammer, saw, and a large boat.

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From the day you open your line of credit, you may have ongoing access to available funds for up to 10 years.

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Calendar pages flip

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This is known as the draw period.

After the draw period ends, your account begins the repayment period, which typically lasts 20 years until the maturity date.

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A line runs from the draw period calendar to the repayment period calendar

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A home equity line of credit generally has a variable interest rate with an option to lock in a fixed rate. Whether your interest rate is variable or fixed, you will have a minimum payment due each month.

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A stack of bills slides across the screen

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During the draw period, your payments may be as low as interest only.

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A larger stack of bills labeled principal appears next to the interest bills. The maturity date is highlighted on a calendar.

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But during the repayment period, your payment will switch to principal and interest, which may increase your payments substantially. There are some things you can explore during the draw period to help lessen the potential payment increase.

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Text, Explore options to help lessen the potential payment increase.

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You can consider making principal only payments in addition to your minimum monthly payment, which can help save on interest over the life of your loan. You can try to lock in a fixed rate for a fixed term, which may result in repaying less principal during the repayment period.

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Pages on the cartoon calendar tear off. A different calendar with a regular blue square moving across it

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Or you could explore refinancing your balance into a new home equity line of credit.

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A cartoon house appears with the word HELOC below it.

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Each situation is unique.

Here at U.S. bank, our bankers can help you manage your home equity line of credit through both the draw period and repayment period. Learn more at usbank.com/endofdraw.

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U.S. Bank logo. Disclaimer, Loan approval is subject to credit approval and program guidelines. Interest rates and program terms are subject to change without notice. Installment loans and unsecured lines of credit are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC. Equal Housing Lender. Copyright 2018 U.S. Bank.

What is the End of Draw Period on my Home Equity Line of Credit?

Learn about the phases over the life of a HELOC.  

Tags: Home equity, Home
Published: November 14, 2018

Every situation is unique. Here at U.S. Bank, our bankers can help you manage your Home Equity Line of Credit through both the draw period and repayment period.

 

Learn more about home equity line of credit end of draw.