quick HELOC question

[Brandon Nappi]

Hi BP forum,

If I were to secure a $50k HELOC on my primary residence at 3.5% and never actually use any of the money would I still have monthly payments? i.e. interest payments?

Thanks!

[Steve Babiak]

No, at least that is the case with any line of credit that I am familiar with including credit cards. Interest is paid only on amounts drawn. Now, some might come with an annual fee to keep the line open, some might require an initial draw so the lender gets paid some interest. Best to ask the lender's loan officer how the line works just in case.