How much does my HELOC payment go up when the draw period ends?

For a $50K balance at 7.43%, the interest-only payment is $310. The fully amortized payment over 20 years is $400 — a 29% jump. For a $100K balance, it's $619 vs $801 — a 30% jump. Payment shock is largest for borrowers who never paid principal during the draw period.

How do I prepare for HELOC payment shock?

Best options: (1) start paying principal during the draw period so you're not shocked, (2) refinance into a new HELOC (resets 10-year draw clock), (3) convert to fixed home equity loan for rate certainty, (4) roll into a cash-out first mortgage refinance. Ideally start planning 12-18 months before the draw period ends.

Can I extend my HELOC draw period?

Not directly — draw periods are contractually fixed at origination. But you can effectively extend by refinancing into a new HELOC before the draw period ends. The new HELOC resets the clock with a fresh 10-year draw period. Some lenders offer a 'renewal' option that's essentially the same thing without technically closing the old line.

What Happens When a HELOC Draw Period Ends? Payment Shock Explained (2026)

Q: What happens when a HELOC draw period ends?

Three things: (1) You can no longer draw new funds — the line is frozen. (2) Your monthly payment converts from interest-only to fully amortizing principal + interest over the remaining 15-20 year term. (3) The payment jumps 25-50% for typical balances — this is 'payment shock.' You still owe the same balance, just structured to be paid off within the repayment period.

The three simultaneous changes

Line freezes — you can no longer draw new funds. Whatever you've drawn (or not) becomes your final balance.
Payment structure changes — from interest-only to fully amortizing principal + interest.
Repayment period begins — typically 15-20 years to fully pay off the remaining balance.

All three happen on the same day — the exact date is in your original HELOC agreement, usually 10 years after the loan was recorded.

Payment shock math

Outstanding balance	Draw period payment (interest-only, 7.43%)	Repayment period payment (20-yr amortized)	Jump
$25,000	$155	$200	+29%
$50,000	$310	$400	+29%
$75,000	$464	$601	+29%
$100,000	$619	$801	+29%
$200,000	$1,238	$1,602	+29%

The percentage jump is the same at every balance because the amortization math is identical. What varies is the absolute dollar impact — a $50K balance jumps by $90/month, a $200K balance jumps by $364/month.

The five options when your draw period is ending

Option 1: Do nothing — accept the payment jump

Fine if the new payment fits your budget. If you've been paying principal during the draw period, your balance is already lower and the shock is smaller. This is the default and often the right choice for borrowers with small balances or improved income.

Option 2: Pay off the balance before the draw period ends

If you have the cash. No prepayment penalty on standard variable HELOCs. Wipes out the problem entirely.

Option 3: Refinance into a new HELOC

Resets the 10-year draw clock. Payment goes back to interest-only. Rate may improve if the market has moved. Low closing costs ($0-$500). Most common play for borrowers who want to preserve HELOC flexibility.

Option 4: Convert to a fixed home equity loan

Same lender or different. Rate is locked. Payment is fully amortizing from day 1 — no draw period at all. Best for borrowers who want rate certainty and don't need re-draw flexibility. Rate premium about 60 bps over comparable HELOC in July 2026.

Option 5: Roll into a cash-out first mortgage refi

Only makes sense if your existing first mortgage rate isn't much lower than current market rates. If your first mortgage is at 3-5%, don't do this. If it's at 7%+, it can be a good consolidation play.

Timeline for planning ahead

18 months before draw ends: pull your loan agreement, confirm the exact conversion date and how the repayment payment will be calculated.
12 months before: model the payment shock at your current balance. Decide which option (1-5 above) fits.
6 months before: if refinancing, start shopping. Rates change; the number you see today may not be the number in 6 months.
3 months before: apply for the refinance if that's the path. Standard HELOC application takes 2-4 weeks; leaves buffer for issues.
Draw end date: line freezes automatically. If you didn't refinance, next month's statement shows the new payment.

Common mistakes at end of draw

Waiting until the payment jump surprises you. It's in your loan agreement — you always had 10 years' notice.
Assuming you can extend the draw period. You can't directly — you have to refinance into a new HELOC.
Refinancing into a cash-out first mortgage when your existing first is at 3%. Kills the low rate for a marginal benefit.
Panicking and paying off with retirement funds. The tax + penalty cost usually exceeds the payment-shock cost.
Not shopping the refinance. Rate discovery for HELOC refis is a 30-minute exercise across 2-3 lenders.

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What Happens When a HELOC Draw Period Ends?