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It is the jump in your payment when the draw period ends. During the draw you may pay only interest, but once repayment begins you must cover principal and interest on a compressed schedule — often ten to fifteen years.

That can multiply your monthly payment severalfold overnight. Borrowers who treated the line as cheap money are sometimes caught off guard, so plan for the transition early.

Lenders look at your first mortgage and the new HELOC together against your home's value. If a lender allows, say, 85 percent combined LTV, your first mortgage balance plus the maximum line cannot exceed 85 percent of the home's appraised value.

The more you still owe on the primary loan, the smaller the line you can open — even on a valuable home with substantial equity on paper.

Yes. Most HELOCs carry a variable rate tied to an index such as the prime rate. When that index rises, your rate and therefore your payment increase on the existing balance, with no new borrowing required.

This is a key difference from a fixed home equity loan. Some lenders offer fixed-rate lock options on portions of the balance to tame that volatility.

No. Every calculation runs entirely in your browser. We never store, transmit or sell the numbers you enter.

It is a revolving credit line secured by your home. During the draw period — often ten years — you borrow what you need and usually pay interest only; then a repayment period begins where you pay the balance down in full, at a usually variable rate.

Usually enough to bring your combined loan-to-value up to about 80–85%. On a $400,000 home with a $250,000 first mortgage, an 85% cap leaves roughly $90,000 of borrowable equity.