Understanding the difference between your draw period and repayment period can help you avoid surprises and plan ahead. This page provides information to help you get started.
Important: If your application date was after June 4, 2017, your minimum draw period payments will consist of principal and interest. If your application date was before June 4, 2017, you can review your contract or monthly statement to verify your payment type.
During the draw period, which is the period of time you’re allowed to use your line of credit, your minimum monthly payment is calculated one of the following ways:
Important: Make sure you review your contract or monthly statement to verify how your HELOC payment is calculated. Some non-Chase originated accounts have different payment calculation methods. Please check your contract for details.
Draw period vs. repayment period
During the draw period, you are allowed to access your line of credit and borrow as much or as little as you need. Your draw period can last up to 10 years and your only limitation is that you stay within your credit limit. You can think of your home equity line of credit as a revolving line of credit and, as you pay down your balance, your available credit will replenish for future draws. Your minimum payment is (for HELOC’s originated after June 4, 2017):
Note: .025% of unpaid principal balance of the revolving line on the billing date plus finance charges accrued for that billing cycle or $100
When your draw period ends, you will enter the repayment period. Your repayment period can last up to 20 years, in which time you are expected to repay your outstanding balance. It’s important to know that you’ll no longer have access to your credit line during this time and you can expect a change in your payment amount. Your minimum payment is: