What is a Fixed Rate Loan Option?

If you have a home equity line of credit (HELOC), you probably enjoy being able to tap into the equity in your home whenever you need.  Some HELOCs even offer flexible, interest-only payments during the draw period.

But did you know that some  HELOCs allow you to lock in a fixed interest rate for a set term for greater peace of mind? With a fixed rate loan option (FRLO), you can avoid fluctuating interest rates by converting all or part of your HELOC balance into a set rate and term. And, depending on your needs, for example, if you’re renovating your kitchen this year and your bathroom the next, you may be able to have multiple FRLOs to lock in the best rate at that time.

A fixed-rate loan option can also be a powerful tool in your financial wellness journey: offering predictability, stability, and peace of mind. Whether you’re consolidating debt, financing a major purchase, or covering an unexpected expense, a fixed-rate loan option allows you to lock in an interest rate that won’t change for a set period of time. That means no surprises, just consistent monthly payments you can plan for. It’s a smart choice if you’re looking to build healthy financial habits and make progress toward your goals with confidence. Because when you have clarity in your payments, you can focus on what truly matters—and reach your possible, one step at a time.

This video explains the main benefits a HELOC offers, including locking in a low fixed interest rate and setting up a predictable, monthly repayment schedule over a set period of time. 

If you're a Bankoh Home EquityLine customer, and want to learn more about how a FRLO could work for you, book a phone appointment with one of our lending experts today!