What is an Interest-Only Home Equity Line of Credit (HELOC)?

An Interest-Only Home Equity Line of Credit (HELOC) is similar to a traditional HELOC in that it provides homeowners with a revolving line of credit secured by the value of their home. The key difference lies in how payments are structured.

With an Interest-Only HELOC, you are only required to pay the interest on the amount you borrow during the initial draw period, giving you greater financial flexibility. This can result in lower monthly payments upfront, but it’s important to plan for repayment of the principal balance after the draw period ends.

This option is ideal for homeowners looking to manage short-term expenses or projects while maintaining control over their cash flow. If you’d like to explore how this type of financing could work for you, contact us today!