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A HELOC draw period is commonly when the borrower may access available credit. The repayment period is commonly when draws stop and the outstanding balance is repaid. Payment amounts can change at the transition.
Published and reviewed October 3, 2026. Borrow Home Equity is not a lender. This page is educational and does not guarantee approval, rates, terms, or available funds.
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The draw period is commonly when a homeowner can borrow from the available line, subject to the agreement. The repayment period is commonly when new draws stop and the outstanding balance is repaid. Exact rules vary by lender and HELOC agreement.
| Feature | Draw period | Repayment period |
|---|---|---|
| Borrowing access | Draws may be allowed up to the available line, subject to terms. | New draws commonly stop. |
| Payment structure | May be interest-only, principal plus interest, or another minimum. | Commonly principal plus interest over a repayment term. |
| Balance behavior | Balance can rise when funds are drawn. | Balance is generally repaid over time if payments are made as scheduled. |
| Risk to watch | Over-borrowing and variable-rate changes. | Payment shock when principal repayment begins. |
What the draw period means
During a draw period, a borrower may be able to access funds up to the available credit line. Some HELOCs may require interest-only payments during this phase, while others may require principal plus interest or another minimum payment structure.
What the repayment period means
During repayment, access to additional draws typically ends and the remaining balance is repaid over time. Payments may include principal and interest, and the payment can be higher than a prior interest-only example.
What can change at the transition
When the draw period ends, the payment may increase because principal repayment begins, the balance is amortized, or the rate has changed. Variable-rate HELOCs can also expose borrowers to rate movement.
Transition checklist
Before the draw period ends, review the HELOC agreement, current balance, rate structure, repayment term, whether any balloon payment applies, and whether the payment fits the household budget.
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Frequently Asked Questions
Can I keep borrowing during the repayment period?
In many HELOC structures, new draws stop during repayment, but agreement terms vary. Review your lender documents.
Why can a HELOC payment increase after the draw period?
Payments may increase when principal repayment begins, the balance is amortized over a term, or the variable rate changes.
Does every HELOC have an interest-only draw period?
No. Payment structures vary by lender and product.