Direct answer
When the draw period ends, new draws commonly stop and repayment begins. Payments may increase if principal repayment starts, the rate changes, or the agreement uses a shorter repayment schedule.
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.
Immediate answer
In many HELOC agreements, the end of the draw period means the borrower can no longer take new advances and must begin repaying the balance. Depending on the agreement, principal plus interest, a different amortization schedule, or a balloon feature may apply.
Why payments can change
Payments may rise because interest-only payments end, the balance starts amortizing, the rate changes, or the repayment period is shorter than expected. Variable-rate exposure can add uncertainty.
Review your agreement
The written HELOC agreement controls the actual transition rules. Review the draw end date, repayment term, rate formula, payment calculation, minimum payment, balloon language, and fees.
Planning checklist
Estimate the payment before the draw period ends, reduce the balance if possible, avoid last-minute draws, confirm the rate structure, and contact the servicer if the future payment is unclear.
Before the draw period ends
- Confirm the draw end date and repayment start date.
- Estimate principal-and-interest payment scenarios.
- Review whether the rate is variable and when it can adjust.
- Check for balloon payment language or special repayment rules.
- Plan whether to reduce the balance before repayment begins.
Authoritative sources
Frequently Asked Questions
Do HELOC payments always increase after the draw period?
Not always, but payments can increase when principal repayment begins or the rate changes.
Can a HELOC have a balloon payment?
Some agreements may include balloon structures. Review the loan documents carefully.
Does Borrow Home Equity service HELOCs?
No. Borrow Home Equity is not a lender or servicer.