Home Equity Loan
What are the payment terms on a home equity line of credit?
if I borrow 20,000 how much will I be obligated to pay back each month? I have a 50,000 line of credit.
Public Comments
- How long will the loan be for? What is the interest rate? Does your line of credit have a minimum percentage payment? If you borrow this amount for five years your payments should be around $375 or so. Phone your bank.
- Typically, with a line of credit you are only required to pay the interest. (Of course it would be a good idea to pay some principal down too.) On a line of credit, the interest is determined very simply: annual interest rate * amount borrowed divided by 12. So at 8% interest rate, your minimum line of credit payment would be $133.
