MythMy monthly payments will increase after the draw period.
Even after your draw period ends, your payment structure will stay the same. The only change is that you'll no longer be able to access funds.
The example below illustrates the benefits of principal-reducing payments on a $20,000 cash advance from a home equity line of credit. Our Wells Fargo customer not only paid down $3,856 in principal, but also paid $836 less in interest during the draw period, compared to someone who paid interest only.
Assumes 4.75% APR with no change in prime rate and no additional advances throughout draw period. The other lender's payment is $79.17 compared to the Wells Fargo payment of $104.33. Your minimum payment will be the lesser of $100.00 or the amount needed to repay your balance with interest.