Home Equity Line of Credit Repayment Period
If your home equity line of credit is entering the repayment phase, make sure you plan ahead to understand your options.
Our specialists are ready to help if you have questions. Call us at 1-800-986-2462.
Understanding what the draw and repayment periods mean for your HELOC
If you have a home equity line of credit (HELOC), you can access (or “draw”) funds from your line up to your credit limit for a certain number of years. This is known as the “draw period.”
After the draw period ends, your HELOC enters the repayment period, and several changes will take place:
- Your ability to draw on your line will end.
- Your account will convert to a fixed term—likely 10 or 20 years based on the terms of your agreement—with a variable interest rate, and your monthly payment may change.
How to prepare for the repayment period
- 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.
- You will receive an estimated monthly payment in your draw-to-repayment conversion notice 90 days before your draw period ends. Several factors may affect the amount of your estimated monthly payment during the repayment period:
- If your APR is based on the Wall Street Journal (WSJ) Prime Rate, your monthly payment amount will change as WSJ Prime changes, as described in your credit agreement.
- If you continue to take advances, or if you pay down your balance prior to entering the repayment period, the estimated payment will change.
- Still need access to credit? Decide whether you should apply for a new HELOC. 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 additional 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 payments in equal monthly installments. This loan may 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.
Loan-in-a-Line
With our Loan-in-a-Line feature, you may be able to lock in all or a portion of your home equity line of credit balance at a fixed rate, term and payment.
Questions? Contact a specialist at 1-800-986-2462.
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 Line of Credit Repayment Details
- Your ability to draw on your line will end.
- Your account will convert to a fixed term, likely 10 or 20 years based on the terms of your agreement, with a variable interest rate, and your monthly payment may change.
Your monthly payment may increase based on a few factors:
- You likely paid interest-only payments, or a percentage of your outstanding balance each month plus interest, during your draw period. When your account converts to the repayment period, your payment will be fully amortizing, usually paid in equal monthly installments. Often, this results in a higher payment amount.
- The APR on your account is tied to the Wall Street Journal Prime Rate. If WSJ Prime increases, your monthly payment will increase.
The transition to the repayment period is required in accordance with your HELOC Account Agreement. To continue to access your home’s liquidity using a home equity line of credit, you will need to apply for a new HELOC.
New applications will be subject to credit approval and the terms of the new account may differ, if approved.
*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.