Repayment of a home equity line of credit or HELOC requires that the borrower makes a monthly payment to the lender. For some home equity lines of credit, borrowers can make interest-only payments for a defined period, after which a repayment period begins.
Interest-only payments are based on the outstanding loan balance and interest rate. During the repayment period, the payment includes both repayment of the loan principal, plus monthly interest on the outstanding balance. Loan payments for the repayment
period are amortized so that the monthly payment remains the same throughout the repayment period, but during that time, the percentage of the amount that goes towards principal will increase as the outstanding mortgage balance decreases. Use this
First Merchants home equity loan calculator to help you to estimate the monthly payment amount of a home equity line of credit to the lender.
Home Equity Line of Credit Payment Calculator