--- title: How to add line of credit billing terms in a loan? description: This article discusses how to add line of credit billing terms to a loan. --- [Skip to content](https://help.themortgageoffice.com/knowledge/terms-line-of-credit-heloc#main-content) [![TMO-LO~1](https://help.themortgageoffice.com/hs-fs/hubfs/TMO-LO~1.png?width=200&height=65&name=TMO-LO~1.png)](https://www.themortgageoffice.com/) - [Platform](https://www.themortgageoffice.com/products/) Show submenu for Platform - [Loan Servicing](https://www.themortgageoffice.com/products/loan-servicing-software/) - [Loan Origination](https://www.themortgageoffice.com/products/loan-origination-software/) - [Fund Management](https://www.themortgageoffice.com/products/fund-management-software/) - [Knowledge Hub](https://www.themortgageoffice.com/knowledge-hub/) Show submenu for Knowledge Hub - [Blog](https://www.themortgageoffice.com/blog/) - [Resources](https://www.themortgageoffice.com/resources/) - [Webinars](https://www.themortgageoffice.com/resources/?_resource_types=on-demand-webinars) - [Seminars](https://www.themortgageoffice.com/seminars/) - [FAQs](https://www.themortgageoffice.com/frequently-asked-questions/) - [Release Notes](https://help.themortgageoffice.com/knowledge/release-notes) Open main navigation Close main navigation - [Platform](https://www.themortgageoffice.com/products/) Show submenu for Platform - [Loan Servicing](https://www.themortgageoffice.com/products/loan-servicing-software/) - [Loan Origination](https://www.themortgageoffice.com/products/loan-origination-software/) - [Fund Management](https://www.themortgageoffice.com/products/fund-management-software/) - [Knowledge Hub](https://www.themortgageoffice.com/knowledge-hub/) Show submenu for Knowledge Hub - [Blog](https://www.themortgageoffice.com/blog/) - [Resources](https://www.themortgageoffice.com/resources/) - [Webinars](https://www.themortgageoffice.com/resources/?_resource_types=on-demand-webinars) - [Seminars](https://www.themortgageoffice.com/seminars/) - [FAQs](https://www.themortgageoffice.com/frequently-asked-questions/) - [Release Notes](https://help.themortgageoffice.com/knowledge/release-notes) - [Contact Support](https://help.themortgageoffice.com/knowledge/kb-tickets/new) [Contact Support](https://help.themortgageoffice.com/knowledge/kb-tickets/new?hsLang=en) How can we help you? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://help.themortgageoffice.com/knowledge?hsLang=en) 2. [Loan Servicing](https://help.themortgageoffice.com/knowledge/loan-servicing?hsLang=en) 3. [Lines of Credit/HELOC](https://help.themortgageoffice.com/knowledge/loan-servicing?hsLang=en#lines-of-credit-heloc) October 9, 2026 # How to add line of credit billing terms in a loan? ## This article discusses how to add line of credit billing terms to a loan. HELOC (Home Equity Line of Credit), or simply "home equity line" or "line of credit", is a loan, usually in a subordinate position, that allows the borrower to obtain advances, or "draws" up to a maximum credit limit. Commonly, borrowers can draw on the line by writing a check, using a special credit card, or in other ways. HELOCs have a "**draw**" and "**repayment**" period, each specified in number of months. Draws can take place any time prior to the draw period expiring. Once the draw period has expired, the HELOC is now in the "**repayment**" phase, at which time no more draws can take place and the borrower must begin to pay down the credit line. NOTES: The **APR** on a HELOC is the **interest** rate and unlike conventional loans, it does not reflect points or other up-front costs. ### **To enter line of credit terms:** - Click on the ![image-png-Jul-14-2023-12-46-04-6535-AM](https://help.themortgageoffice.com/hs-fs/hubfs/image-png-Jul-14-2023-12-46-04-6535-AM.png?width=15&height=15&name=image-png-Jul-14-2023-12-46-04-6535-AM.png) **Loan Servicing** drop-down menu in the left panel of The Mortgage Office®. - Click the **Loans** drop-down menu. - Click **Lines of Credit** from the list that drops down. - From the **Lines of Credit**grid, select the loan you want to modify. TIP: If the record you want to edit is not visible, use the grid's vertical scroll bar to scroll the contents of the grid up or down, or click ![FindSearch icon box](https://help.themortgageoffice.com/hs-fs/hubfs/TMO%20APP%20Icons/FindSearch%20icon%20box.png?width=231&height=27&name=FindSearch%20icon%20box.png) **Find** to search for the record by entering your own search criteria. For additional information see [How to Use Find](https://help.themortgageoffice.com/knowledge/how-to-use-find?hs_preview=HVOdZgqP-118552067706&hsLang=en) and [How to Use the Data Grids.](https://help.themortgageoffice.com/knowledge/how-to-use-the-data-grids?hs_preview=iGfLglJv-112766338347&hsLang=en) - Click ![edit](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/edit.png?width=15&height=15&name=edit.png) from the options available on the top panel or **double-click** on the item. - Click ![list check 60](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/list%20check%2060.png?width=22&height=17&name=list%20check%2060.png) **Terms** from the list located on the left of the window, and select the **Line of Credit** Tab. - Enter the following information in the following sections: ### **Credit Limit & Repayment:** | **Field:** | **Description:** | | --- | --- | | **Available Credit** | The available credit is the Credit Limit amount **less** all outstanding balances. | | **Credit Limit** | The maximum amount the borrower can have **outstanding** at any one time. | | **Draw Minimum** | The **smallest** amount of money that can be advanced when recording a draw. | | **Draw Maximum ![square-check-solid](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/square-check-solid.png?width=15&height=15&name=square-check-solid.png)** | If checked, this is the **largest** amount of money that can be advanced when recording a draw. | | **Draw Period** | The period of time in months during which **advances** can be made. | | **Repayment Period** | The period of time in months in which the **outstanding balance**, accrued interest and any unpaid charges must be **paid**. The repayment period begins at the end of the draw period and ends on the loan's maturity date. | ### **Finance Charge Calculation:** | **Field:** | **Description:** | | --- | --- | | **![square-check-solid](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/square-check-solid.png?width=15&height=15&name=square-check-solid.png) Exclude Late Charges/NSFs** | Select this option if you want to exclude **late** charges and **NSFs** from interest charge computation. | | **![square-check-solid](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/square-check-solid.png?width=15&height=15&name=square-check-solid.png) Exclude Reserve Balances** | Select this option if you want to exclude **reserve** trust balances from interest charge computation. TIP: If this option is unchecked, the balance used to calculate interest charges will be reduced by the amount in the reserve trust account. | | **![square-check-solid](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/square-check-solid.png?width=15&height=15&name=square-check-solid.png) Exclude Impound Balances** | Select this option if you want to exclude **impound** trust balances from interest charge computation. TIP: If this option is unchecked, the balance used to calculate interest charges will be reduced by the amount in the impound trust account. | | **![square-check-solid](https://help.themortgageoffice.com/hs-fs/hubfs/Icons/square-check-solid.png?width=15&height=15&name=square-check-solid.png) Exclude Finance Charges** | Select this option if you do not want to assess interest on unpaid interest balances. If this option is unchecked, you have the following additional options: - **Note Rate.** Default. Interest is assessed at the loan's note rate. - **Fixed Rate.** Interest is assessed at a fixed rate. - **Modifier.** Interest is assessed at the note rate plus (or minus) a rate modifier. | ### Draw/Transaction Fee: | **Field:** | **Description:** | | --- | --- | | **% of Draw** | The transaction fee to be assessed as a percentage of the total **amount** of the draw. | | **Plus** | The **dollar amount** to be assessed in addition to the calculated % of draw. | | **Minimum** | The **minimum** transaction fee to be assessed per draw. | ### **Account Maintenance Fee:** | **Field:** | **Description:** | | --- | --- | | **Fee Amount** | The **periodic** amount charged as a **maintenance** fee for servicing the line of credit. This fee is charged regardless of whether or not the credit line has been used. | | **Next Due Date** | Enter the effective **date** when the next maintenance fee must be charged. | | **Frequency** | The **frequency** determines how often the maintenance fee is charged and is used to automatically increment the next due date field. The options available are: - **Monthly** - **Quarterly** - **Semi-Yearly** - **Yearly** | ### **Billing Cycle:** | **Field:** | **Description:** | | --- | --- | | **Calculation** | The method used to calculate and assess finance charges. The options are: - **Daily Balance** - **Average** (Daily) Balance - **Lowest** (Daily) Balance - **Highest** (Daily) Balance | | **Frequency** | The billing frequency determines **how often** finance charges are assessed and billing statements generated. The options available are: - **None** - **Monthly** - **Quarterly** - **Semi-Yearly** - **Yearly** | | **Billed Through** | Enter the date finance charges have been **assessed** through (inclusive). | | **Start Day** **(1-31)** | The day of the month in which the billing cycle **starts**. NOTE: Values between 28 and 31 may not occur each month in which case the last day of the month will be used instead. | | **Billing History** | Click this hyperlink to view a **chronological** listing of all billings for this loan. The last billing can be **deleted** from the billing history. | ### **Pay Amount Calculation:** TIP: The selections found here determines the payment **amount** the borrower must remit. TIP: These options do **not** affect the interest calculations. | **Field:** | **Description:** | | --- | --- | | **Default** | The **calculated** payment amount equals the interest due for the period. | | **Fixed P&I** | Select this option and **enter** the amount of the payment.  TIP: Selecting this option may cause the borrower to **pay less** than the interest due causing the principal (or unpaid interest) balance to increase. | ### Last Billing Statement: | **Field:** | **Description:** | | --- | --- | | **Amount Billed** | This is the amount that was on the previous billing statement and the amount that was **due** from the borrower, including any fees or charges. | | **Amount Paid** | The amount that the borrower **paid**; not necessarily the amount billed. | | **Late Charges** | Any **outstanding** late charges the borrower needs to pay will be listed here. | | **Amount Pending** | This is the **difference** of the Amount Billed vs. Amount Paid. For example: if the Amount Billed is $1,000 ($900 in P&I and $100 in Late Charges) and the borrower only pays the $900 in P&I, the unpaid $100 will be listed in the Amount Pending. | ### **Auto Payment from Reserve:** | **Field:** | **Description:** | | --- | --- | | **Percent of Amount Due** | Enter the percentage of the billing statement's Minimum Payment Due to be automatically paid from the **Reserve** account. | | **Plus Flat Amount** | Enter an additional **flat dollar** amount to be added to the amount calculated above. | | **If Insufficient Funds in Reserve** | Select from the menu what to do if there are **insufficient** funds in the Reserve account (at the time of generating the billing statement): - **Do not pay.** Ignore the Auto-Payment during this billing cycle. - **Pay full amount.** Apply the full Auto-Payment amount even if there aren't sufficient funds in the Reserve account. - **Pay available amount.** Apply as much as possible from the Reserve account without overdrawing it. | - 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