Credit Limit: Based on the equity in your home, typically up to 85% of your home’s appraised value minus any outstanding mortgage balances.
Draw Period: Usually lasts 5 to 10 years, during which you can borrow funds as needed. You may only be required to make interest payments during this time.
Repayment Period: After the draw period ends, you enter the repayment phase, which typically lasts 10 to 20 years. During this time, you repay both principal and interest.