Interest Rates
HELOC Interest Rates: Fixed vs Variable Explained
Understand how fixed and variable HELOC rates work, how they impact your monthly payment, and when each option makes sense.
January 05, 2025•6 min read
Fixed vs Variable: What’s the difference?
- Variable rate: Tied to prime rate + margin, can change over time
- Fixed rate: Locked rate for a portion or all of the balance
How rates affect your payment
A higher APR increases both interest-only and amortized payments. During repayment, the amortization formula magnifies rate changes.
Estimate your payment under different rates
Use our calculator to compare scenarios with fixed and variable assumptions.
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