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I think the advantage of a HELOC is that you typically are only required to pay interest during the draw period (typically 10 years).

No, that's not very common any more. Bank regulators have pushed banks away from allowing interest-only loans, even on loans that are being held in the bank's portfolio. As a consequence, most HELOC lenders require at least a small amount of principal repayment, even during the draw period.



We just got a HELOC at our credit union and we are only required to pay interest during the 10 year draw period.
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