HELOC End of Draw Guidance
Understanding your HELOC end of draw or balloon period
Your home equity line of credit, or HELOC, has an established draw period. During that time you have the ability to borrow from your available line of credit. Once this period ends, you no longer have the ability to borrow additional funds. This is called the end of draw.
What does an end of draw mean for me?
As you near your end of draw, it's important to understand your options so you can plan accordingly. Be sure to read any notices you receive from us and talk with your lender about any questions or concerns you have.
When your established draw period ends, 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 only applies to lines that enter a repayment phase.
- Balloon: One large payment paying off the entire outstanding balance.
What are my end of draw options?
You have a few repayment options to choose from:
- Apply to refinance your EquityLine: If you're approved, your outstanding balance will roll into the new line. Your approved credit line will be available for another 10 years.
- Repayment options:
- If you have a standard line of credit, you'll enter the repayment phase to pay off the loan balance without any further action from you.
- If your line has a balloon structure, your outstanding balance becomes due at end of draw. If you'd rather have a repayment phase, you can contact us prior to maturity to modify your line.
- Pay off the outstanding balance in full.
For additional end of draw guidance, contact us prior to maturity to discuss your options.
Bank deposit products are offered by First Citizens Bank. Member FDIC and an Equal Housing Lender. icon: sys-ehl.