HELOC draw period ending: how much your payment jumps, and 5 options
When your HELOC’s draw period ends, the line closes to new borrowing and you start paying back the balance. On most plans that means principal plus interest over a set repayment term, commonly 10 to 20 years, so a payment that was interest-only goes up even if your rate never moves. Some plans instead make the whole balance due at once, a balloon payment.
On a $60,000 balance at 8.00%, a $400 interest-only payment becomes $502 a month on a 20-year repayment schedule and $728 on a 10-year one. Below: how to find your dates, how big your jump will be, and five ways to handle it. If a new line or loan is the answer, letting several lenders compete shows you the range of offers before your repayment period starts.
See your own jump.
Enter your balance, rate and repayment term in the HELOC payment calculator. It shows your payment during the draw period and what it becomes once repayment starts.
What happens when the HELOC draw period ends?
Three things change on your end-of-draw date:
- You can no longer borrow. The line stops working for new draws, so the checks or card tied to it no longer pull money.
- Your payment is recalculated. Federal bank regulators describe two outcomes: the balance is either due immediately as a balloon payment, or it is repaid over the remaining term “through higher monthly payments, resulting in payment shock.”
- Principal finally shrinks. The CFPB notes that even plans with some principal in the draw-period payment typically do not repay the balance by the end of the draw period. Interest-only plans repay none of it.
What usually does not change: on a variable-rate plan, the rate keeps following its index (often the prime rate) plus your margin. So a rate increase and a principal schedule can hit at the same time. The prime rate was 7.00% as of October 20, 2026, after the Federal Reserve raised rates on September 16, 2026.
HELOC draw period vs repayment period
| Draw period | Repayment period | |
|---|---|---|
| Can you borrow? | Yes, up to your limit, and again as you repay | No |
| Minimum payment | Interest only, or interest plus a small slice of principal | Principal plus interest, or the full balance at once (balloon) |
| Common length | 10 years | 10 to 20 years |
The CFPB says repayment schedules often run 10 or 15 years. One large national bank, for example, pairs a 10-year draw period with a 20-year repayment period. Your agreement states your exact terms.
What happens to a home equity line of credit after 10 years?
A common setup is to borrow for 10 years, then repay for 20: a 30-year plan in total. For the first decade you can draw, repay and draw again. In year 11, the balance you are carrying is spread over the next 240 months.
Features tied to the draw period also end with it. That bank, for instance, lets borrowers lock part of a HELOC balance at a fixed rate, but only during its 10-year draw period. If your lender has a feature like this, you may need to use it before your end-of-draw date.
How much will my HELOC payment go up? A worked example
Say you owe $60,000 on your HELOC at 8.00% (the 7.00% prime rate plus an assumed 1.00% margin, for illustration) and you have been paying interest only: $60,000 × 8.00% ÷ 12 = $400 a month.
| Phase | Per month | Change |
|---|---|---|
| Draw period, interest only | $400 | – |
| Repay over 20 years | $502 | +25% |
| Repay over 15 years | $573 | +43% |
| Repay over 10 years | $728 | +82% |
| Balloon plan | $60,000 | due at once |
Principal and interest, calculated by LenderMatch with a standard amortization formula. The 8.00% rate is an assumption for illustration, not a quote.
Two things make it worse. If your rate rises to 9.00% just as repayment starts, the 20-year payment is $540 instead of $502. And the total cost adds up: repaying $60,000 over 20 years at 8.00% costs about $60,400 in interest, on top of the $48,000 of interest paid over 10 interest-only years if the full $60,000 was owed the whole time.
How long do you have to pay off a HELOC?
You have until the end of your repayment period, also called the line’s maturity date. With a 10-year draw and 20-year repayment, that is 30 years after the line opened. With a balloon plan, the CFPB says you may have to pay the entire balance at once when the draw period ends, and you must be ready to do that by refinancing with the lender, getting a loan from another lender or some other means. If you cannot pay a balloon in full, you could lose your home.
You can usually pay sooner. Before you do, check your agreement for an early termination fee or prepayment penalty, which the CFPB lists among the HELOC costs to compare.
How to find your end-of-draw date and new payment
- Read your HELOC agreement and disclosures. Lenders must disclose the plan’s payment terms. Look for the length of the draw period, the repayment period and whether a balloon is due.
- Check your statement or online account for the draw period end date and the current rate.
- Call your lender. Ask what your payment will be, whether the rate stays variable and whether renewal, extension or conversion to a fixed-term loan is available. Federal regulators note that lenders often start reaching out six to nine months or more before the end-of-draw date.
What to do when your HELOC draw period ends: 5 options
1. Repay on schedule, and pay extra now
If the new payment fits your budget, you do not have to do anything. Paying the balance down before repayment starts lowers the new payment: in the example, paying $15,000 off first leaves $45,000, and the 20-year payment falls from $502 to $376.
2. Refinance the HELOC into a new HELOC
A new line, from your lender or another one, pays off the old balance and starts a fresh draw period. The CFPB lists “getting a loan from another lender” as one way to handle a balloon. The payment can go back to interest only ($400 in the example), but the $60,000 is still owed when the new draw period ends. Expect a review of your credit and income, and possibly appraisal fees or closing costs.
3. Move the balance to a fixed-rate home equity loan
A home equity loan pays one lump sum, usually at a fixed rate, with equal payments that pay it off over a set term. Used to pay off the HELOC, it turns a moving payment into one that stays the same. Some HELOC lenders also offer to convert the balance to a fixed-term loan or lock part of it at a fixed rate, which the CFPB says is typically higher than the variable rate. See HELOC vs home equity loan for how the two compare.
4. Fold it into a cash-out refinance
A cash-out refinance replaces your first mortgage with a bigger one that also pays off the HELOC, leaving one payment. It tends to work when your current mortgage rate is close to or above today’s. When it is far below, the math rarely works:
| Path | Per month | What changes |
|---|---|---|
| Keep both, repay HELOC over 20 years | $1,625 | $1,123 mortgage + $502 HELOC |
| Cash-out refi, $240,000 at 7.40%, 30 years | $1,662 | The rate on the whole $180,000 mortgage rises from 3.50% to 7.40%, and a new 30-year clock starts |
Assumes a $250,000, 30-year mortgage at 3.50% taken out 12 years ago (about $180,000 left) and the Freddie Mac 30-year average of 7.40% for the week of October 15, 2026. Before closing costs, which the CFPB says are generally higher on a cash-out refinance. Compare with your own numbers in the refinance calculator and our guide to cash-out refinance vs HELOC.
5. Ask about renewal, extension or a modification
Some lenders renew a line into a new draw period or stretch the repayment term. The 2014 interagency guidance encourages lenders to offer sustainable terms that avoid unnecessary payment shock, but it also says draw terms and interest-only periods should not be extended without credit approval. If you are worried about making the new payment, ask early. Lenders must give HELOC borrowers a list of HUD-approved housing counselors, who offer free or low-cost help.
Can your lender freeze or close the line before the draw period ends?
Yes, in limited cases. Under Regulation Z, a lender can freeze or lower your limit while your home’s value has declined significantly or it reasonably believes a material change in your finances means you cannot repay, among other conditions. If you plan to draw more before the end date, do not wait until the last month.
Frequently asked questions
Can I still use my HELOC after the draw period ends?
No. Once the draw period ends, you can no longer borrow from the line. Checks and cards tied to it stop working, and your payments go toward paying off what you already owe.
Does a HELOC have a maturity date?
Yes. The maturity date is the end of the repayment period, when the balance must be fully paid. On a plan with a 10-year draw period and a 20-year repayment period, that is 30 years after the line opened. On a balloon plan, the full balance is due when the draw period ends.
Can I extend my HELOC draw period?
Sometimes. Some lenders offer renewals or extensions, but it is the lender’s decision, not a right. Federal bank regulators’ 2014 guidance says lenders should not extend draw terms or interest-only periods without credit approval, so expect to qualify again.
How long do you have to pay off a HELOC?
As long as your repayment period, which the CFPB says is often 10 or 15 years. Some lenders use 20 years. Your agreement states the exact term, and some plans instead require the whole balance at once when the draw period ends.
Can I pay off my HELOC early?
Usually yes, but check your agreement for an early termination fee or prepayment penalty first. The CFPB lists both among the HELOC costs to compare.
Does LenderMatch check my credit?
No. LenderMatch never pulls your credit. A lender you choose may check it, with your permission, when you apply.
Compare new HELOC offers before your repayment period starts →
Sources
- CFPB, “What you should know about home equity lines of credit” (HELOC booklet, October 2022 edition).
- OCC, Federal Reserve, FDIC, NCUA and Conference of State Bank Supervisors, “Interagency Guidance on Home Equity Lines of Credit Nearing Their End-of-Draw Periods” (SR 14-5, July 1, 2014).
- Regulation Z, 12 CFR 1026.40(f) (accessed October 22, 2026).
- CFPB, “What is the difference between a home equity loan and a home equity line of credit?” (last reviewed August 28, 2026).
- A large national bank's fixed-rate HELOC option page (accessed October 22, 2026).
- Federal Reserve, H.15 Selected Interest Rates: bank prime loan rate 7.00%, as of October 20, 2026.
- Freddie Mac, Primary Mortgage Market Survey: 30-year fixed 7.40%, week of October 15, 2026.
Last reviewed October 22, 2026.