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PNC's HELOC Repayment Plan

Currently reading the disclosure and would like some clarification.

I am understanding that the HELOC tends to have a draw period of 10 years. Then afterwards is the repayment period. So does this mean, I only have to pay variable interest for 10 years? Unless I do the following....

Have a balance of 5000...move it to fix rate interest on day 300, then I have to pay interest on that 5000 for 5 years and then pay principal and interest on that interest when 5 years and day 300 begins.

  • I will clarify on a phone call , but wanted to get some basic understanding first. Thank you

----------Legal Disclosure Below--------------------------

This option allows you to pay only the interest that accrues during each monthly cycle (and no principal) on the amount of the Fixed Rate Part, for up to 5 years from the date it is established. If you pay only the accrued interest, at the end of the Interest Only period you will still owe the principal and your payment will increase because you must then start to repay that principal, as well as interest that will continue to accrue at the then applicable rate of variable interest. Your payment may increase even more if the variable rate of interest is higher than the previously applicable Interest Only rate. Interest Only payments do not build home equity.

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source https://www.reddit.com/r/RealEstate/comments/ikc819/pncs_heloc_repayment_plan/
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