- With a home equity line of credit, that portion of the life of the loan that follows the draw period. During the repayment period, the borrower cannot take out any more money, but must pay down the loan.
mortgage repayment period, loan repayment period
Related Terms and Acronyms
- Draw Period — Definition,
- On a line of credit, the draw period is the fixed time when a borrower can make withdrawals from the account. After the draw period expires, the borrower can renew the credit line or may be required to pay the outstanding balance in full, or over time.
- Home Equity Line of Credit (HELOC) — Acronym, Very Important,
➥ Also known as a Home Line of Credit.
- An open-ended loan, paid as revolving debt, that is backed by the equity in the property.
- Line of Credit (LOC) — Acronym,
- A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
- Secured Loan — Definition,
- Borrowed money that is backed by collateral.