How to Convert a HELOC to a Fixed Rate in 2025: 5 Smart Options Explained

Rising interest rates can make a variable-rate HELOC unpredictable. Converting your HELOC to a fixed rate, either by locking in with your current lender or refinancing with a new one, can give you stable monthly payments and peace of mind.

In this guide, we’ll walk through every way to switch your HELOC to a fixed rate, when it makes sense to do so, and which lenders stand out for fixed-rate options.

Table of Contents

1. Quick answer: How to convert a HELOC to a fixed rate
2. Reasons to convert to a fixed rate
3. Choose your path: Which option fits your goal?
4. Option 1: Convert with your current lender (rate lock or modification)
5. Option 2: Refinance into a fixed-rate HELOC
6. Option 3: Refinance into a home equity loan
7. Option 4: Roll your HELOC into a mortgage with a cash-out refinance
8. Option 5: Use a fixed-rate personal loan to pay off your HELOC
9. How your payment changes after converting
10. Costs and fees to watch for
11. Best fixed-rate HELOC lender to consider
12. FAQ

Quick answer: How to convert a HELOC to a fixed rate

You have two main paths to turn a variable-rate HELOC into a fixed-rate option:

1. Convert with your current lender. Many lenders let you “lock” part or all of your balance into a fixed-rate sub-loan during your draw period. This process keeps your HELOC open for future borrowing while converting a portion to predictable, principal-and-interest payments. It’s often quick and low-cost.
2. Refinance with a new lender. You can pay off your existing HELOC by refinancing into a fixed-rate HELOC, home equity loan, or another fixed-rate loan type. This option can secure a lower rate or better terms if your credit or home equity has improved, but it typically involves closing costs.

Reasons to convert your HELOC to a fixed rate

Locking in a fixed rate can make sense in several scenarios:

• You want predictable payments. Fixed rates ensure your monthly payment won’t rise if market rates climb.
• You’re nearing the end of your draw period. Converting now can ease the transition to full principal-and-interest payments.
• Rates may rise soon. Locking now can protect you from future increases tied to the prime rate.
• You’re ready to pay off the balance. Fixed options help you start reducing principal, not just paying interest.
• Your finances have improved. A stronger credit score or higher home value could qualify you for lower fixed rates and better terms.

While a fixed-rate HELOC may start with higher payments than a variable-rate line, it also provides payment stability and a clear payoff timeline, two major advantages for long-term planners.

Choose your path: Which option fits your goal?

The best way to convert your HELOC depends on what you want to achieve: stability, flexibility, or faster payoff.

Use this quick guide to see which path fits your situation:

Option 1: Convert with your current lender (rate lock or modification)

If you’re happy with your current lender, the simplest path is to lock in a fixed rate on all or part of your HELOC balance.

Most major banks and credit unions let you request a rate lock online or by phone, often without re-applying for a new loan.

How it works

1. You choose how much of your balance to convert.
2. The lender applies a fixed rate and repayment term (usually 5 to 20 years).
3. The locked portion becomes a sub-loan with principal-and-interest payments.
4. The rest of your HELOC remains open and variable, so you can still borrow if needed.

Another option is to keep your variable HELOC but just start paying a small amount more every month to begin paying off the loan.

Why it helps

• You gain predictable payments while keeping access to unused credit.
• It’s typically faster and cheaper than refinancing.
• Many lenders charge little or no fee for a rate-lock request.

Watch out for

• Minimum amounts (some require at least $1,000 per lock).
• Limits on active locks (often three at a time).
• Expiration if you’re already in repayment; after that point, you may need a full refinance.

Option 2: Refinance into a fixed-rate HELOC

If your goal is to keep a revolving line of credit but eliminate rate risk, you can refinance into a fixed-rate HELOC with a new lender. This option replaces your existing HELOC with a brand-new line that carries a fixed rate from day one.

How converting your HELOC to a home equity loan works

When you refinance, the new lender pays off your old HELOC balance and issues a new account with its own rate, term, and borrowing limit. You’ll still have the flexibility to draw funds as needed, but your rate and monthly payments stay the same for the life of the line.

Why it helps

• You lock in a stable fixed rate while keeping credit-line flexibility.
• You may qualify for better terms if your credit or home value has improved.
• Some lenders fund quickly, sometimes in under a week.

Watch out for

• Closing costs or origination fees, similar to a refinance.
• A first-draw requirement (some lenders require you to draw 100% at funding).
• High credit standards (typically 700 – 720+ for best rates).

Typically, the only time I would recommend converting a HELOC to a fixed-rate loan would be if you’re planning to refinance your entire mortgage to lock in a fixed payment.

There might be a period where we’re expecting market interest rates to rise for many reasons, but that is hard to know with certainty. So even if you assume rates will rise in the months or years ahead, when you factor in the increase in payment due to having to repay principal and interest over a new shorter repayment period, it typically wouldn’t make sense versus the interest-only payment of a HELOC, which you could likely renew if needed when it reaches its repayment period.

Option 3: Refinance into a home equity loan

If you’re ready to move from flexible borrowing to fixed, predictable payments, refinancing into a home equity loan can be a smart shift. Unlike a HELOC, a home equity loan is a lump-sum loan with a fixed rate and repayment term.

How it works

Your new home equity loan pays off your existing HELOC balance. From there, you’ll make equal monthly payments of principal and interest over a set term, typically five to 30 years.

Why it helps

• Fixed monthly payments make budgeting easier.
• You’ll start paying down principal immediately.
• You can often choose your term based on your goals: shorter for faster payoff, longer for lower payments.

Watch out for

• Higher upfront costs than a simple rate lock.
• Less flexibility once funds are disbursed. (You can’t redraw funds later.)
• Potentially higher monthly payments than an interest-only HELOC.

Option 4: Roll your HELOC into a mortgage with a cash-out refinance

If you’d rather manage one fixed mortgage payment instead of juggling a HELOC separately, a cash-out refinance can simplify things. This option replaces your existing mortgage (and HELOC, if you have one) with a new, larger mortgage at a fixed rate.

How converting your HELOC a mortgage works

You take out a new mortgage for more than you currently owe. The new loan pays off your old mortgage and your HELOC balance, leaving you with a single payment, and possibly some extra cash from your home’s equity.

For example, if you owe $250,000 on your mortgage and $50,000 on your HELOC, you might refinance into a $320,000 mortgage. The first $300,000 pays off your existing loans, and you keep $20,000 in cash (minus closing costs).

Why it helps

• Simplifies repayment into one fixed mortgage payment.
• Can offer a lower rate than home equity loans or HELOCs.
• Lets you access additional equity at closing.

Watch out for

• High closing costs, often several thousand dollars.
• Longer repayment timeline if you restart your mortgage term.
• Your entire home becomes collateral, not just the HELOC portion.

Interest rates declining is a huge factor in this decision. You can refinance your entire mortgage to consolidate (if at a lower rate) and not significantly increase your payments even as you start paying off more of the loan principal.

A good course of action would be to evaluate what your total payment is when you have used all you plan to of your HELOC, and then determine what interest rate you need on a full mortgage to equate to a roughly equal monthly payment. Then you are ideally lowering your interest costs while also starting to pay off the principal.

Option 5: Use a fixed-rate personal loan to pay off your HELOC

If your HELOC balance is small, or you’d prefer a quicker, simpler option, a personal loan can be an effective way to convert your variable HELOC into a fixed-rate loan. Unlike home equity products, personal loans don’t require your house as collateral.

How converting a HELOC to a personal loan works

You apply for a fixed-rate personal loan from a bank, credit union, or online lender and use the funds to pay off your HELOC balance in full. Then you repay the personal loan through fixed monthly installments.

Why it helps

• Fast approval and funding (often within a few days).
• No appraisal or home valuation required.
• Keeps your home separate from the new loan.

Watch out for

• Higher rates than secured home equity loans.
• Shorter repayment terms, usually two to seven years.
• Lower borrowing limits, typically capped around $50,000 to $100,000.

How your payment changes after converting

No matter which option you choose, expect your monthly payment to rise once you switch from a variable-rate HELOC to a fixed-rate loan. That’s because you’ll start paying principal and interest, not just interest.

Here’s what to keep in mind:

• Your payment increases, but so does your progress. Each payment chips away at your balance.
• You’ll have predictable costs instead of rate swings tied to the prime rate.
• The overall interest paid over time may drop if you shorten your term or secure a lower fixed rate.

Costs and fees to watch for

Before you commit to converting or refinancing your HELOC, take a close look at the potential costs. Some options, especially those involving a new lender, can include expenses that offset your interest savings if you’re not careful.

Here are the most common fees to expect:

• Closing costs and origination fees: These typically range from 2% to 5% of the loan amount for refinances.
• Appraisal or valuation fees: Some lenders require updated property values before approving a new loan or HELOC.
• Rate-lock or conversion fees: Your current lender may charge a flat fee to lock in a portion of your HELOC balance.
• First-draw or funding fees: Certain fixed-rate HELOCs require a full draw at closing and deduct a small percentage from the amount you receive.
• Early closure or recoupment fees: If your lender covered your closing costs and you close the account early, you might need to repay those expenses.
• Annual or inactivity fees: Some HELOCs charge small annual fees or penalties if you don’t draw funds for a set period.

Best fixed-rate HELOC lender to consider

Aven

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About Aven’s fixed-rate HELOC

Aven stands out for its fixed-rate structure from day one, offering a stable and predictable payment schedule. With a fully digital application process, Aven provides instant prequalification and funding in as little as three days. You could access up to $400,000 at competitive rates, and the automated appraisals streamline the experience without the need for in-person visits.

However, Aven also requires a full draw of the loan amount upfront, which may not suit everyone’s needs. The first-draw fee of 4.90% adds to the initial costs, and availability is limited to 32 states, excluding major markets including New York and Texas.

We’ve also observed that most applications with a credit score lower than 720 have been unsuccessful. You’ll need to have very good or excellent credit to be approved for an Aven HELOC.

HELOC details

Fixed rates (APR)	6.99% – 15.49%
Loan amounts	$5,000 – $400,000
Repayment terms	5, 10, 15, or 30 years
Availability	Available in 32 states*
Min. credit score	640

FAQ

Can I refinance my HELOC into another loan type?

Yes. You can refinance your HELOC into a fixed-rate HELOC, home equity loan, or cash-out refinance that consolidates your HELOC and primary mortgage into one payment. Each option has its own pros and cons. Home equity loans provide the most stability, while cash-out refinances can simplify your finances into a single loan.

Should I refinance my HELOC instead of converting it?

Refinancing may be better if you want to lock in a lower rate, extend your term, or consolidate multiple debts. But if your current lender offers a low-cost or free conversion, sticking with them could save you time and fees. The right choice depends on your credit, home equity, and how long you plan to stay in your home.

Can I switch back to a variable rate if interest rates fall?

Sometimes. Certain lenders, such as U.S. Bank, allow borrowers to unlock a fixed-rate portion and revert to variable, often with a small fee. But if you’ve refinanced into a new fixed-rate HELOC or loan, the only way to go variable again is to refinance into a new product.