Private Lending & Conventional Mortgage Advice
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago on . Most recent reply
![Aaron Sauer's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1414170/1694952164-avatar-aarons314.jpg?twic=v1/output=image/cover=128x128&v=2)
Avoiding HELOC early closure fees
Let's say someone has an interest only line of credit secured by investment property, and that line has a $100k limit at 5% (using round numbers for easy math). Bank pays closing costs for the LoC, but borrower is required to pay them back if he closes the line of credit before 2 years. LoC has a 10-year draw period, and is then converted to a 10-year loan.
Now, let's say the borrower decides to take $10k out. If the first payment made on the line, during the interest-only period, is $5500 ($500 to interest - $5000 to principle) will the remaining monthly interest payments be recalculated according to the new loan balance of $5000, or would monthly interest still be the same $500 as original?