How Can I Get a Fixed, Better Rate for a HELOC?

Hi, I’m looking for advice on how to get a better rate for a HELOC loan with a fixed rate option. Any tips?

Best option might be to wait until interest rates drop.

HELOCs typically have variable rates. If you’re looking for a fixed rate, consider a Home Equity Loan instead.

Some HELOCs offer a fixed-rate option on a portion of the balance, though it may have a higher rate. Another choice is a second mortgage with a fixed installment.

You can generally get either a lower rate or lower fees with a HELOC, but usually not both.

Look into HELOCs with partitioning. You can take out the funds and later fix the rate on a portion of the balance.

Not directly related, but do you know how soon you can get a HELOC or cash-out refinance after closing? Here are the details:

  • Purchase price: $310k
  • Loan balance: $300k
  • Market value: $365k
  • Closing date: June 2024

@Wes
Most HELOCs go up to 80% LTV, though some allow 90%. Based on your figures, you might need to wait until you have more equity.