How your home equity line of credit works
Your home equity line of credit is a revolving credit account, meaning as you pay back your balance you can continue to draw on available funds throughout the draw period. Most draw periods are either 10 or 15 years followed by a fully amortized repayment period, typically either 10 or 20 years.
Your account has a variable interest rate that is determined by a combination of the Prime Rate (which may vary) added to a margin (which does not change). During the draw period you can convert all or any portion of your line of credit balance into an installment loan with a fixed rate and fixed payments using the Fixed Rate Option.1
Whether your balance is at a variable rate or fixed rate, you will have a minimum payment due each billing cycle. Your payment may consist of the interest due and part of the principal balance or, for those who qualify, only the interest due.
What to expect at end of draw
When the draw period ends you can no longer access the line or convert a variable rate balance to a fixed rate option. You will then enter the repayment period during which you will be required to pay both interest and part of the principal balance, therefore, your payment may increase substantially.
To lessen the impact of the monthly payment change there are options to consider as you near the end of draw.
End of draw FAQs
Your end of draw date can be found on your home equity line of credit statement in the upper right corner or by calling 800.USBANKS (800.872.2657).
If you would like to inquire about eligibility to lock in a rate call 800.USBANKS (800.872.2657). You can have up to 3 Fixed Rate Options on your account. A $50 fee may apply.
To make principal only payments you can visit a branch, call 800.USBANKS (800.872.2657) or log in at usbank.com and enter an amount in the principal payment box on the Pay a U.S. Bank Account page.
If you reach the end of draw date with a zero balance, your home equity line of credit will be closed. There is no repayment as you do not owe a balance.
Each situation is unique. Contact a banker at 800.853.4958 to discuss how your current payment will change when you reach the repayment period.
Then if you’re concerned about increased payments, please contact the Mortgage Assistance Point to discuss a potential loan modification.
Call 877.490.7827 Monday - Friday 7 a.m. to 9 p.m. CT; Saturday 9 a.m. to 1 p.m. CT or send an email to MortgageAssistancePoint@usbank.com.
No. We don’t offer extensions on any home equity loans or home equity lines of credit at this time. However, if you would like to refinance your line of credit call 800.853.4958 to discuss.