What is the difference between a HELOC draw period and repayment period?

A Home Equity Line of Credit (HELOC) operates in two distinct phases: (1) The Draw Period (typically years 1 through 10): During this window, you can borrow, repay, and re-borrow against your home equity line of credit as needed. Most lenders require only interest-only payments during the draw period, keeping monthly minimums low. (2) The Repayment Period (typically years 11 through 30): The borrowing window closes permanently. Your remaining loan balance amortizes over the final 20 years, and you must make mandatory monthly payments of principal plus interest. Homeowners who only paid interest-only during the draw period frequently experience 'payment shock' when their monthly bill doubles or triples during the repayment phase.