HELOC End of Draw Options
Understanding your HELOC end of draw or balloon period
Your home equity line of credit has an established draw period. During that time you have the ability to borrow from your available line of credit. As you near the end of the draw period, it's important to understand your options so you can plan accordingly. Be sure to read the notices you receive from us and talk with your lender about any questions or concerns you may have.
What is it?
The end of draw or balloon occurs when the established draw period of your line of credit has ended.
Once this period ends, you no longer have the ability to borrow additional funds.
The interest-only payments you've been making stop, and your repayment of the loan will become either:
- Standard - Principal and interest term payments (likely resulting in higher monthly payments). This applies to lines that enter a repayment period.
- Balloon - One large payment paying off the entire outstanding balance
Your options include:
- Apply for a new EquityLine (refinance). If you are approved, your outstanding balance will roll into the new line. Your approved credit line will be available for another 10 years.
- Repayment Options:
- For standard lines reaching end of draw, enter into the repayment phase to pay off the balance of the loan without any further action.
- For lines with a balloon structure, your line doesn't allow for repayment over time. However, if you contact us prior to maturity, you can modify your line to include a repayment phase.
- Pay off the outstanding balance in full.
Contact us prior to maturity to discuss one of these options.
Bank deposit products are offered by First Citizens Bank. Member FDIC and an Equal Housing Lender. icon: sys-ehl.