Repayment Period
Direct definition
Repayment period is the phase of a loan — often on a HELOC — during which you pay both principal and interest on a set schedule.
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Plain-English explanation
On products like a HELOC, the repayment period follows an initial draw period. Once it begins, you can no longer borrow against the line, and payments are structured to pay off the outstanding balance by the end of the term, which varies by lender and program.
Why it matters
Payments typically jump when the repayment period starts because they now include principal, not just interest, so planning ahead avoids payment shock.
Where you may see it
- HELOC agreement
- Line of credit terms
- Home equity loan documents
A real-world example
Educational and illustrative only
A common misunderstanding
It is not the same as the draw period, when interest-only or flexible payments may be allowed.
Frequently asked
Can the repayment period be extended?+
Sometimes lenders offer refinancing or modification options, but this varies by lender and program.
Does the rate change during repayment?+
On many HELOCs the rate remains variable throughout, though this depends on the specific product.
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- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026