Home Equity Line of Credit Balloon Payment
If your home equity line of credit (HELOC) is approaching maturity or “ballooning”, make sure you understand your options so you can plan ahead.
Our specialists are ready to help if you have questions. Call us at 1-800-986-2462.
Understanding what the balloon payment means for your HELOC
If you have a home equity line of credit with a balloon payment, when your loan “matures” or reaches the end of its term, you can expect that:
- Your access to funds will end when your account reaches the maturity date.
- If you do not owe a balance when your account reaches maturity, the account will simply be closed.
- If you owe a balance, you will need to pay your outstanding balance in full with a one-time payment on or before the maturity date. This payment is known as the “balloon payment.” This payment can be sizable, so make sure you plan ahead.
How to prepare for your home equity line balloon payment
- Understand the terms of your account, including your credit limit, maturity date, current balance, and interest rate by logging in to MyMortgage or calling a Regions account specialist at 1-800-986-2462.
- Assess your current financial situation to determine whether you will be able to pay any balances due by your maturity date.
- Decide whether you should apply for a new HELOC or other type of home loan in order to satisfy the balloon balance or retain access to credit. The terms of the new account may differ, and eligibility is subject to approval.
If you have additional questions, just call 1-800-986-2462 to reach a Regions account specialist.
Explore your options
Apply for a new home equity line of credit*
If you’d like to continue having access to your home’s equity, you may be eligible for a new HELOC. The new HELOC must be used to satisfy the old one, and will result in a new draw period and repayment period.
Contact us with questions or to apply at 1-888-IN-A-SNAP.
Apply for a home equity loan*
A home equity loan offers a fixed rate and fixed monthly payments. This loan could be used to satisfy any balance on your existing home equity line.
Contact us with questions or to apply at 1-888-IN-A-SNAP.
Apply for a mortgage loan*
A new mortgage loan could be used to satisfy any balance on your existing home equity line. We offer a wide range of mortgage loans, including fixed and adjustable rate options.
Pay off your home equity line of credit
Request a payoff quote on your existing account to determine the amount needed to pay your balance in full.
Questions? Contact a specialist at 1-800-986-2462.
Home Equity Balloon Payment Details
A balloon payment is a lump sum paid at the end of a home equity line of credit account that pays off any outstanding balances in full.
- Your ability to draw on your line will end.
- You will need to pay your outstanding balance in full in a one-time payment. This payment is known as the “balloon payment.”
New applications will be subject to credit approval and the terms of the new account may differ, if approved.
If you don’t make the balloon payment on your home equity line of credit by the due date, your account will be in default, which could negatively affect your credit rating and put your home at risk. We’re here to help guide you and help you understand the options available to you. Learn about payment assistance options and how our specialized team can help.
*Subject to additional terms, eligibility, and approval. Any outstanding balance on an existing HELOC must be satisfied with the opening of the new HELOC account.