The draw period is the first period of your HELOC and usually lasts 10 years. During this time, you can actively borrow what you need*, and you have the choice to make interest-only payments on what you’ve borrowed2. If you pay back more of your principle, you can borrow that money again, as needed*, until the end of the draw period.
The repayment period is the second period of your HELOC and usually lasts 20 years2. During this time, you’ll make monthly payments that are calculated based on your outstanding balance at the end of the draw period, plus accrued interest and other fees, charges, and costs. Refer to your credit agreement for details on how your lender calculates payments during the repayment period. You can always pay off your entire outstanding balance at any time.