Heloc Repayment Calculator

Using the HELOC Repayment Calculator

The HELOC Repayment Calculator is designed to help you understand the costs associated with your Home Equity Line of Credit (HELOC). This tool provides detailed calculations regarding your monthly payments and total interest during both the draw period and the repayment period. Follow the steps below to use the calculator effectively.

Step 1: Enter Your Credit Limit

Begin by inputting your HELOC credit limit. Locate the field labeled Credit Limit ($) and enter an amount within the range of $10,000 to $1,000,000. This is a mandatory field, so ensure that the value you input meets these criteria.

Step 2: Input the Amount Drawn from HELOC

Next, fill in the Amount Drawn ($) field with the total amount you have withdrawn from your HELOC. This field is also required, and the value should be a positive number equal to or less than your credit limit.

Step 3: Specify the Annual Interest Rate

In the field labeled Annual Interest Rate (%), enter the current interest rate applied to your HELOC. Be sure to enter a value between 0.01% and 30%. This step is essential, as it directly influences the calculations for your payments and interest.

Step 4: Set the Draw Period Duration

Indicate the length of your draw period in years in the Draw Period (Years) field. This number should be between 5 and 10 years, inclusive. The calculation will consider this period to determine payments and interest during the draw phase.

Step 5: Set the Repayment Period Duration

Enter the number of years in which you plan to complete repayment in the Repayment Period (Years) field. Choose a duration between 10 and 20 years. This data is crucial for calculating monthly payments and interest during the repayment period.

Step 6: Select Your Payment Type During the Draw Period

Choose your preferred payment method during the draw period by selecting an option from the field labeled Payment Type During Draw Period. The options include Interest Only or Principal + Interest. This selection will affect how your payments and interest amount are calculated during the draw period.

Understanding the Results

Once you have entered all the necessary information, the calculator will provide a detailed breakdown of your financial obligations, including:

• Monthly Payment During Draw Period: Calculated based on your selected payment type.
• Monthly Payment During Repayment Period: Estimated monthly payment amount during the repayment period.
• Total Interest During Draw Period: The total interest accrued during the draw period.
• Total Interest During Repayment Period: The total interest accrued during the repayment period.
• Total Cost of HELOC: The overall cost of your HELOC, including principal and interest payments.

Review these results to understand the financial impact of your HELOC over its entire term, enabling you to plan your budget more effectively.