A home equity loan has a fixed rate and fixed payment for the full term. Your rate depends on credit, CLTV, and term length. Fixed pricing is the main appeal versus a variable HELOC.
How your rate is set
Rate is driven by credit score, combined loan-to-value, and term. Stronger credit and lower CLTV earn better pricing. Because it’s fixed, your payment never changes — valuable when rates are volatile.
Fixed vs. variable trade-off
A home equity loan’s fixed rate may start higher than a HELOC’s introductory variable rate, but it protects you if rates rise. For a known, one-time expense, that certainty is often worth it.
Frequently asked questions
Is the rate really fixed for the whole term?
Yes. Both the rate and the monthly payment are fixed for the life of a home equity loan.
Why choose fixed over a HELOC?
Predictability. If you’re borrowing a set amount and want a stable payment, fixed wins — especially when rates could rise.
What terms are available?
Commonly 5 to 30 years. Shorter terms mean higher payments but less total interest. We’ll model the options.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.