By Brandon Sooknanan, Founder of StatementReady
On a loan file with a HELOC second lien, the broker needs the draw-period interest-only payment and the repayment P&I for the debt side. The HELOC payment calculator shows both.
The formulas
- Interest-only (draw) = balance drawn × annual rate ÷ 12
- Repayment = standard amortization over the repayment months at the same rate (at 0% the balance is divided evenly by the months)
- Total interest during draw = interest-only payment × draw months; balance unchanged
Rounded to the cent.
Inputs, not settings
Balance drawn (or line amount and percent drawn), annual rate, draw period years, repayment period years. There is no default for the rate; the calculator sets no rate and no terms. Confirm figures with the lender.
Worked example (page numbers only)
- $50,000 drawn at 8% entered → interest-only $333.33 a month
- 10-year draw → $40,000.00 interest
- 20-year repayment → $418.22 a month P&I
Round numbers for illustration only; the rate and terms are not defaults.
Estimate caveats
Holds the entered rate fixed; ignores variable-rate changes, the index and margin, rate caps and fees; doesn't apply a lender's minimum-payment rule or the payment a lender uses to underwrite the line.
Drawn vs full line
Payments run on what's drawn. For combined loan to value with the full line or the drawn balance, use the LTV and CLTV calculator.
What it doesn't do
- No lending decision; sets no rate or terms; estimate only
- Runs in the browser; what you type isn't sent or stored
Related free tools: mortgage DTI calculator, DSCR calculator, asset depletion calculator, bank statement income calculator, all free tools.
When you're ready to work from the real statements, StatementReady checks whether each statement's transactions add up to its printed balances. It assists review of loan files; the lender makes all underwriting decisions.
Not legal or tax advice. StatementReady isn't affiliated with or endorsed by Fannie Mae or any lender named here.
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