How fast should I pay off my HELOC?​ 

How fast you should pay off your HELOC depends on your financial situation and needs.  

A HELOC, or home equity line of credit*, typically works in two periods: draw and repayment. During your draw period, you can access funds based on your home equity while only needing to pay interest on the amount you access. This period lasts for a few years before you enter your repayment period. While in your repayment period, you will not be able to make any additional draws and will have to pay back your loan principal and interest. 

While you don’t need to pay your HELOC principal amount during the draw period, some borrowers choose to start paying off their loan sooner. 

Begin the process of getting a HELOC today by starting a HELOC application. 

How do I repay my HELOC?​ 

You typically won’t start paying off your HELOC until the draw period ends. After your draw period, you will begin your repayment period, during which you cannot access HELOC funds and will have to pay back the principal of your HELOC. 

During both the draw and repayment periods, you will be required to pay interest on the amount you borrowed with your HELOC. 

When should I start paying off my HELOC?​ 

Many borrowers choose a HELOC for the advantage of holding off on making principal payments while accessing the funds. This allows borrowers the freedom to save some money before putting it toward their HELOC. 

If you choose to wait until the designated time to pay off your HELOC principal, that is totally normal. However, if you would like to pay off your HELOC earlier, you can. The exact time you should start paying off your HELOC depends on your needs and financial situation. 

Can I pay off my HELOC during the draw period?​ 

Yes, you can pay off your HELOC during the draw period. Paying off your HELOC during the draw period could come with benefits, like saving you on future interest payments, but may also come with prepayment penalties. 

Can I pay off my HELOC early?​ 

Yes, you can pay off your HELOC early. 

Paying off your HELOC early could save you money that would go to future interest payments and lower your monthly payments during the repayment period**. However, paying off your HELOC early may come with a penalty. 

Are there penalties for paying off a HELOC early?​ 

Some lenders may charge a fee to pay off a HELOC early. These penalties are typically a percentage of your remaining principal balance. Make sure you review your HELOC agreement and ask your Loan Officer if there are prepayment penalties. 

How can I learn more about the benefits of a HELOC? 

You can learn more about the benefits of a HELOC by talking with a Loan Officer when starting your application. 

When you begin your HELOC application, you will be connected with a Loan Officer who will be available to show you the ways a HELOC could benefit you and help you through the application process. 

Start a HELOC application to connect with a Loan Officer and learn the benefits of a HELOC. 

_{*Owning‘s HELOC is a fixed-rate open-end product using your home as collateral. Not available in all states. Go to Owning.com/HELOC for information including important property and borrower requirements and restrictions which impact rate and max available loan amount. Subject to approval.} 

_{**Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Owning for current rates. Restrictions apply.} 

_{Applicant subject to credit and underwriting approval. Restrictions apply.} 

_{Information provided is for educational purposes only. It should not be construed as financial or legal advice or instruction. Owning does not guarantee or assume liability for the accuracy, completeness or timelines of the information. You should conduct additional research before making any mortgage related decisions.}