A monthly Home Equity Line of Credit (HELOC) payment typically includes your principal balance, plus monthly interest on the outstanding balance. Some HELOCs allow you to make interest-only payments for a defined period of time, after which a repayment period begins. Interest-only payments are based on the outstanding loan balance and interest rate.
During your repayment period, your payments are amortized so that the monthly payment remains the same. During that period, the percentage of the payment that goes toward principal will increase as the outstanding mortgage balance decreases. Use this calculator to estimate how much a HELOC could cost you per month.