HELOC Audit Matrix

2026 Home Equity Architecture

A Home Equity Line of Credit (HELOC) functions as a revolving credit facility secured by the 'trapped alpha' in your primary residence. In the 2026 credit market, the focus is on navigating **CLTV Friction**, **Variable Rate Carry**, and **Repayment Shock**. Our S-Class engine analyzes the core liquidity vectors: **Equity Appraisal Velocity**, **Interest-Only Draw Efficiency**, and **Amortization Cliff Mapping**.

The Actuarial Model: Managing the Amortization Cliff

Standard calculators often fail to account for the **Payment Shock Gap**. During the draw period, a $50,000 balance might only require $250/month in interest. However, once the repayment period triggers, that same balance could explode to $600+/month as principal is forced into the schedule. Our Equity Audit Engine applies a **Shock Multiplier**, identifying the exact liquidity required to bridge the transition from draw to repayment in the 2026/2036 cycles.