Interest is assessed every day based on the balance that you owe. To calculate how much interest is assessed each day, you can multiply your principal balance by your line’s interest rate and then divide by 366 (because 2020 is a leap year). To see how much interest built up while your payment was deferred, you would add these amounts from each day since your last payment. To make this easy, your statement will show an average daily balance that considers payments and draws against your line, as well as the interest rate.

Even though no payments are required during a deferment period, interest continues to build up during this time. When your deferment period ends and you resume monthly payments, you will have an accumulation of unpaid interest that gets added to your balance and repaid with a new monthly payment amount.

Yes, if your account was in the “draw” phase, you can continue to use your line of credit. The draw period remains unchanged. At the end of your draw period, we will follow the normal process to calculate your payment.

As a reminder, we still reserve the right to suspend draw privileges - just as we had prior to the COVID pandemic and your deferment. As always, if your draw privileges are suspended, we will notify you with our reasoning and the process to appeal our decision.

If your account is in the “draw” phase, you can continue to use your line of credit. The draw period remains unchanged. However, at the end of deferment the amount of interest from your deferment period will reduce the amount you have available to draw, unless you made payments during the deferment period.

As a reminder, we still reserve the right to suspend draw privileges - just as we had prior to the COVID pandemic and your deferment. As always, if your draw privileges are suspended, we will notify you with our reasoning and the process to appeal our decision.

Yes. We are required to report your account accurately to the credit bureaus. We report the deferred payment as a part of our monthly reporting process and code the account as ‘impacted by a natural or declared disaster’.

If you had a $45,000 line of credit with a 6% interest rate during your 10-year draw period, your monthly payment would be $225, assuming you paid interest only during the draw period and made no additional draws. If you needed to take a 3-month COVID-related deferment,

• Your monthly payment amount after deferment would increase to about $228.
• The amount available to draw would be reduced by $675 (the amount of interest that accrued during your deferment that was added to your principal balance).
• Your draw period would end as originally scheduled.
• Your final payment date would be pushed back by three months, so that you will make the same number of payments.

If your account is in repayment, your final payment date would also be pushed back by three months so that you will make the same number of payments, and your balance and payment amount would adjust to account for accrued interest.