Here’s what you need to know:

1. Flexible access to funds: A Traditional HELOC functions like a revolving credit line, allowing you to borrow as needed up to your approved credit limit during the draw period.
2. Draw period: The draw period is the time in which you can borrow, repay, and reborrow funds. After the draw period, the HELOC enters the repayment period, where you’ll make payments on both the principal and interest.
3. Repayment period: After the draw period, the HELOC enters the repayment period, where you’ll make payments on both the principal and interest.