The draw period of a HELOC is the initial period (typically 10 years) during which you can access funds from your Home Equity Line of Credit and make interest-only payments.
What is the draw period of a HELOC?
During the draw period, you can borrow money as needed, up to your approved credit limit, and you only pay interest on the amount you actually use. This gives you maximum flexibility for home improvements, debt consolidation, or emergencies.
How the Draw Period Works at PDCU
People Driven Credit Union offers a standard 10-year draw period on most HELOCs. You can draw funds by check, online transfer, or debit card. You make interest-only payments each month, keeping your monthly payment lower.
What Happens After the Draw Period?
At the end of the 10-year period, your loan automatically enters a 20-year repayment period. You then pay both principal and interest, and you can no longer draw additional funds.
Common Questions
What is the draw period of a HELOC?
The draw period is the initial period (typically 5-10 years) during which you can access funds from your loan and make interest-only payments. After the draw period ends, you enter the repayment period, in which you pay back both principal and interest.
Get Help from Our Team
Call us at 844-700-7328 during business hours. You can also visit any branch in Livonia, Southfield, Warren, Ypsilanti, or Romeo.
5 Helpful Hints About the HELOC Draw Period
- First, plan your borrowing during the 10-year draw period while payments are lowest.
- Next, make extra payments toward principal if you can to reduce the balance before repayment begins.
- Also, set up AutoPay to never miss an interest-only payment.
- Then, review your HELOC statement monthly to track your available credit.
- Finally, contact us at 248-263-4100 if you want to understand what the draw period of a HELOC means for your specific loan.
People Driven Credit Union’s HELOC gives you a generous 10-year draw period, so you have maximum flexibility when you need it most. You borrow only what you need, pay interest only on what you use, and enjoy low monthly payments during that time.
