Estimate your interest-only payment during a HELOC's draw period and the fully amortizing payment once the repayment period begins.
Total interest paid during the 10-year draw period (if balance held flat): $42,500.
During the draw period, only interest accrues on the outstanding balance. Once the repayment period starts, the standard amortization formula applies over the remaining term.
Draw $50,000 at 8.5%: about $354/month interest-only. After the draw period, that balance amortized over 20 years would run about $434/month. Compare HELOC rates.