What is HELOC payment shock?

Payment shock occurs when your HELOC transitions from the draw period (interest-only payments) to the repayment period (principal + interest payments), often causing monthly payments to increase by 50-100%.

Is this HELOC calculator really anonymous?

Yes, completely. We don't require registration, email, or any personal information. No credit check is performed. Your calculations remain 100% private.

How accurate is this HELOC calculator?

Our calculator uses the same formulas banks use and pulls real-time Prime Rate data from the Federal Reserve. However, actual rates vary by individual circumstances. Always contact lenders for personalized quotes.

Do I need to provide my credit score?

No exact credit score is required. Simply select your credit range (Excellent, Good, Fair, or Poor) to see estimated rates. This does not affect your credit.

🏠 Calculator 📋 Detailed Analysis 🏦 Compare Banks

HELOC Calculator

See the payment shock banks don't show you - 100% anonymous, no strings attached

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100% Anonymous - No Registration

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No Credit Check

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See Hidden Payment Shock

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Independent Tool - Not a Lender

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Your Information

Property Value

Outstanding Mortgage Balance

Property Type

Credit Line Amount

$50,000

Max: $140,000

$15K $300K

Your Credit Score Range

⏳ Current Prime Rate

Fetching from Federal Reserve...

Excellent (740+)

9.25% APR

Prime + 0.75%

Good (670-739)

10.75% APR

Prime + 2.25%

Fair (580-669)

12.50% APR

Prime + 4.00%

Poor (<580)

14.75% APR

Prime + 6.25%

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Your Results

Your Starting Payment

$385

per month for the first 10 years

Draw Period

Years 1-10

$385

Interest-only payments. Flexible access to your credit line.

Repayment Period

Years 11-30

$457

Principal + interest payments. No additional draws allowed.

⚠️ Payment Shock Alert - What Banks Don't Emphasize

Your monthly payment will jump by 18.7% when you enter the repayment period. That's an extra $72/month - or $864/year.

Most borrowers don't realize this until it's too late. Plan ahead for this increase.

💰 Ways to Lower Your Rate

0.25%

Auto-Pay Discount

Set up automatic payments from checking

0.50%

Relationship Discount

Have other accounts with the lender

1.00%

Larger Draw Discount

Borrow $250,000 or more at account opening

Frequently Asked Questions

What is a HELOC and how does it work?

A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home. During the draw period (typically 10 years), you can borrow as needed up to your credit limit and usually pay only interest. During the repayment period (typically 20 years), you can no longer borrow and must pay back both principal and interest.

Why does my payment increase after 10 years?

During the draw period, you typically pay only interest on the amount borrowed. When the repayment period begins, you must start paying back the principal plus interest, which significantly increases your monthly payment. This is called "payment shock."

How is my maximum credit line calculated?

Lenders typically allow you to borrow up to 85% of your home's value (CLTV) minus your outstanding mortgage balance. For example, if your home is worth $400,000 and you owe $200,000, your maximum HELOC would be ($400,000 × 85%) - $200,000 = $140,000.

Are HELOC interest rates fixed or variable?

Most HELOCs have variable interest rates tied to the Prime Rate. This means your payment can change if interest rates change. Some lenders offer the option to convert all or part of your balance to a fixed rate.

Can I deduct HELOC interest on my taxes?

Interest may be tax-deductible if you use the funds to "buy, build or substantially improve" your home. Consult a tax advisor for your specific situation as tax laws have changed in recent years.