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How to calculate monthly HELOC payments?

My lender is proposing a 3yr $50k HELOC (2nd loan in an 80/10/10) with $262 monthly payments. I'm unable to reconcile these payments with the total loan amount if paid within 3 years (i.e. $262*36 months < $50k). Are these interest only payments? What are the typical payments on these loans? (loan/total # months)+interest?

Thanks in advance for your response.
  • July 17 2012 - Walnut Creek
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Answers (2)

Best Answer

If you are borrowing $50K for 3 years, then the payment of $262 would yield a note rate of 4.79. You will have a balloon payment of  $47,849 in the 36th month. Will you have $48K in 36 months?
  • July 17 2012
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Payments on a HELOC are typically interest-only.  If yours is interest-only, your rate is 6.288%

Check with your lender.  You may have a balloon payment after three years.  Whatever the terms, your lender should be able to explain thoroughly.  
  • July 17 2012
  • 0Yes

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