Fixed vs Variable Home Equity Rates
Here is the 2026 view on fixed vs variable home equity rates — what moves them and when to lock.
What to know
Variable rates (HELOCs) start lower but rise and fall with Prime, so payments are unpredictable. Fixed rates (home equity loans) lock a steady payment, trading flexibility for certainty. Choose variable if you value low cost and flexible draws, fixed if you want budget stability.
What affects your rate
- Your credit score and combined loan-to-value
- HELOC (variable, Prime + margin) vs home equity loan (fixed)
- Lien position and occupancy (primary vs rental)
- The Prime rate and Fed policy — and lender margins, so compare quotes
Example HELOC cost by rate (on a $100,000 balance)
| Rate | Interest-only / mo | Amortizing (20-yr) / mo |
|---|---|---|
| 7.50% | $625 | $806 |
| 8.00% | $667 | $836 |
| 8.50% | $708 | $868 |
| 9.00% | $750 | $900 |
| 9.50% | $792 | $932 |
| 10.00% | $833 | $965 |
Rates move with Prime. Join the free Cashout Equity alerts so you can lock a fixed-rate option at the right time.
Track Your Home Equity Free
Free to join in under 30 seconds. We will notify you when it is time.
Frequently Asked Questions
- Fixed vs Variable Home Equity Rates — the quick answer?
- Variable rates (HELOCs) start lower but rise and fall with Prime, so payments are unpredictable. Fixed rates (home equity loans) lock a steady payment, trading flexibility for certainty. Choose variable if you value low cost and flexible draws, fixed if you want budget stability.
- Are HELOC rates higher than mortgage rates?
- Usually yes — HELOCs are variable and sit in second lien position, so they price above first-mortgage rates, but you only pay interest on what you draw.