Most HELOCs carry a variable rate = Prime + a margin set by your credit and CLTV. During the draw period many are interest-only; some lenders offer a fixed-rate lock on portions of the balance. Rates change — we quote current pricing.
How the variable rate works
Your rate equals the Prime Rate (which follows the Fed) plus a margin. Stronger credit and lower CLTV earn a smaller margin. Because Prime moves, your payment can rise or fall — budget for that.
Fixed-rate lock options
Some HELOCs let you convert part of the balance to a fixed rate, blending flexibility with payment stability. If you’re borrowing a large amount for a specific project, this can be worth it. We’ll compare lenders that offer it.
Frequently asked questions
Are HELOC rates fixed or variable?
Usually variable (Prime + margin). Some lenders let you lock a fixed rate on part of the balance.
Why did my HELOC payment change?
Because the rate is tied to Prime. When the Fed moves rates, your HELOC rate and payment can move too.
How is my margin decided?
By your credit score, CLTV, and the lender. Better credit and more equity mean a lower margin over Prime.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.