What is a "draw period" and a "repayment period?"

The draw period is determined by your lender and is the time frame in which you are actively borrowing. You are only required to pay the interest on your HELOC during the draw period.⁵ You'll pay down what you owe during the repayment period—15 or 20 years^6,7 depending on the offer—by making regular payments calculated using the current interest rate. You can always pay off your entire outstanding balance at any time.