How to Convert a HELOC to a Fixed-Rate Loan (Plus Refinance Options)

Worried about rising rates on your HELOC? Converting your HELOC to a fixed-rate loan—or refinancing it with a lender that offers fixed-rate HELOCs or another loan type—could help you lock in a stable rate and predictable payments.

This guide covers everything you need to know about when and how to convert your HELOC so you can decide whether it’s the right move for you. The following companies offer fixed-rate HELOCs for the full term, but please note that they’re better options for credit scores of 720+. If you have a credit score under 700, we recommend you try adjusting terms with your current HELOC lender first.

How to convert a variable-rate HELOC to a fixed-rate option

You can convert a variable-rate HELOC to a fixed-rate HELOC in one of two ways:

1. Work with your current lender
2. Refinance your HELOC with a new lender

Work with your current lender 

The easiest way to convert a variable-rate HELOC to a fixed-rate HELOC is to work with your current lender. The details vary by lender, but many HELOC lenders have a simple process where you can request a rate lock online without involving a loan officer. You may be able to see what your rate, term, and monthly payments are before accepting terms. 

If this option isn’t available, contact your lender to ask what it can do for you.

Refinance your HELOC with a new lender

When you refinance your HELOC with a new lender, the new loan pays off your original HELOC balance. The lender then issues a new fixed-rate HELOC or another loan type based on your current home equity, income, and credit profile. This process effectively closes the original HELOC and replaces it with a new financial agreement. 

Refinancing allows you to shop around for better interest rates or more favorable terms. For instance, if market interest rates have dropped since you opened your HELOC, refinancing could lower your overall costs. Some lenders may offer reduced fees or promotional fixed-rate periods, making the switch more affordable.

Borrowers with improved credit scores or increased home equity since opening their original HELOC may also qualify for better terms, such as higher borrowing limits or reduced rates.

The main downside with a refinanced HELOC is the additional closing costs you may incur. If refinancing with a new lender makes sense for you, here are our two top-rated HELOC lenders with fixed rates:

Figure

Best Overall

4.9 _/5

View Rates

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About Figure’s fixed-rate HELOC

• No in-person appraisal needed
• Option to redraw up to 100% of funds
• Funding can be available in as few as 5 days
• Check your rate without affecting your credit score

Figure offers fixed rates from the start, making it a strong option for homeowners looking to avoid the unpredictability of variable rates. With a 100% digital process, including automated appraisals and eNotary services, Figure simplifies application and approval, allowing borrowers to access funds in as little as five days. You must draw the full credit line at origination, which locks in your rate for the entire term, providing stability in your payments.

However, Figure’s requirement to draw 100% of the funds upfront might not be ideal for those who prefer more flexibility in accessing their funds gradually. The origination fee of up to 4.99% can add to the overall cost, and the product is unavailable in a few states, including Hawaii and New York.

HELOC details

Fixed rates (APR)	6.95% – 15.55%
Loan amounts	$15,000 – $400,000
Repayment terms	5, 10, 15, or 30 years
Availability	Not available in Hawaii, Kentucky, New York, or West Virginia
Min. credit score	640

Aven

Best Customer Reviews

4.8 _/5

View Rates

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About Aven’s fixed-rate HELOC

Aven stands out for its fixed-rate structure from day one, offering borrowers a stable and predictable payment schedule. With a fully digital application process, Aven provides instant prequalification and funding in as little as three days. Borrowers can 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

Fixed-rate conversion vs. refinancing a HELOC

Here’s how the two options differ.

Fixed-rate conversion	Refinance
Can work with your current lender	Often involves applying with a new lender offering fixed-rate HELOCs, which pays off your current HELOC and issues a new credit line
Minimal or no fees with many lenders	Closing costs, including application fees, appraisal fees, and potential origination fees
Keeps HELOC open for future borrowing during draw period	Depending on your credit profile, you could access lower rates or better terms
Lock in a predictable rate while maintaining access to the unused line of credit	Opportunity to renegotiate loan terms
Faster and simpler than refinancing	Consolidates the HELOC into a lump-sum loan or single repayment plan
Retains the original HELOC; only the selected portion has a fixed rate	Closes the original HELOC and replaces it with a new credit line

How does the fixed rate on a HELOC work? 

It depends on your lender.

1. Figure and Aven have fixed rates from the time you open a credit line.
2. Several other lenders, including U.S. Bank, let borrowers convert their HELOC to a fixed rate for the remainder of their draw period.
3. Still others, such as Bethpage FCU, may apply fixed rates (also known as rate locks) to a number of individual draws based on when the money is withdrawn. It’s common to be able to do this on your own online. 

Rate locks often have minimum loan amounts. For example, you may need to select at least $1,000 to lock a portion of your HELOC. Also, electing to convert a HELOC to a fixed rate is only available during the draw period. If the HELOC is in the repayment period, it has a set interest rate and repayment term.

If your HELOC is still in the draw period, you’ll start paying down the balance faster when you convert to a fixed-rate option. As a result, you’ll still have access to your credit limit at the variable interest rate.

What are typical rates for a fixed-rate HELOC?

Figure, our highest-rated HELOC lender, offers fixed rates for the life of the HELOC of 6.95% – 15.55% APR, depending on creditworthiness.

On average, HELOC rates are higher than cash-out refinance and home equity loans. Lenders might reserve the lowest HELOC rates for borrowers choosing an introductory and variable interest rate. For example, Bethpage FCU offers a 12-month introductory rate starting at 6.99% for VantageScores of 720 and up, with variable post-introductory rates starting at 8.50%.

Borrowers who opt to lock in a fixed-rate HELOC may pay higher rates, but if you’re worried about how often adjustable interest rates rise, you might want to lock in your rate now. 

How will my payments change?

Your payments will likely be higher when you convert to a fixed-rate HELOC. The draw period on a HELOC lasts about 10 years, offering the opportunity to withdraw funds as needed up to your line of credit. As you borrow, you’re often only required to pay interest on your balance throughout the draw period. 

When you elect to convert all or a part of your HELOC with a fixed rate and term, you’ll start making installment payments that include principal and interest. (This is also the case with a fixed-rate HELOC, such as Figure or Aven offers.) Once the repayment term starts, the monthly payments will likely be higher than when you were just paying interest on your balance.  

Do I need a new lender to convert my HELOC to a fixed-rate loan?

Depending on your lender and situation, it might make sense to contact your current bank first to convert your HELOC. 

You already have a relationship with that lender, so a loan swap could be more straightforward. You may also get more competitive terms as your lender attempts to keep your business.

Your lender may be able to:

• Swap your variable-rate HELOC for a fixed-rate HELOC
• Offer rate locks for portions of your HELOC amount
• Offer a fixed rate on your HELOC balance for a promotional period (for example, 12 months)
• Refinance your HELOC balance into a home equity loan

A new lender might make more sense in some situations. It will pay off the old HELOC when refinancing to put themselves in the junior lien position behind your primary mortgage.  

Will I pay fees?

• If your lender allows you to roll a variable-rate HELOC balance into a fixed-rate HELOC or home equity loan, you may be able to get the fees waived. 

• If you refinance with a new lender, you may pay closing costs and other fees.

Certain lenders offer credits or to pay closing costs when you take out a new loan. If you close the account early, you may need to repay those waived expenses. Check with your current HELOC lender to see whether you’re subject to early prepayment penalties to pay off and close your HELOC account.

Pros and cons of converting your HELOC to a fixed rate or refinancing

Converting a HELOC to a fixed-rate loan or refinancing with a new lender come with several benefits and drawbacks. Understanding these can help you decide which approach works best for your financial situation.

Pros

• Your interest rate won’t go up during the life of the loan

  Whether you convert with your current lender or refinance with a new lender, locking in a fixed rate ensures stability in your monthly payments. You’re protected from fluctuating interest rates, offering peace of mind during volatile market conditions.

• Potential to access lower rates through refinancing

  Refinancing your HELOC with a new lender could give you access to lower interest rates or better terms than your original loan, especially if your financial situation or market conditions have improved.

• You’ll start to pay off your loan

  Switching to principal-and-interest payments helps reduce your balance faster than interest-only payments. Refinancing can also allow you to extend the term or adjust the repayment structure to better suit your financial goals.

Cons

• Your monthly payment will be higher

  Whether you convert your HELOC or refinance it, fixed-rate payments include principal and interest, leading to higher monthly payments compared to the interest-only payments during the draw period.

• Refinancing costs may offset savings

  Refinancing usually involves closing costs, appraisal fees, and origination fees, which can be significant. Consider whether the potential interest savings outweigh these upfront costs before refinancing.

• Rates could continue to drop

  Locking in a fixed rate means you won’t benefit if rates decline further. This risk applies to both conversions and refinances, making it important to assess market trends before making your decision.

• You could incur additional costs for converting or refinancing

  Some lenders may charge fees for converting your HELOC to a fixed rate. Refinancing involves similar costs, such as application, appraisal, or title fees. Be sure to weigh these costs against the potential benefits.

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.

Should I convert my HELOC to a fixed rate? 

The right financial decision depends on your unique circumstances. A few variables can make the decision easier for you:

If…	Consider	Best for
You want a lower rate	Refinancing with a new lender at a lower fixed rate	Borrowers with improved credit or market rate drops
You want better terms	Refinancing to extend your term length or reduce fees	Those needing more flexible payment options
Your current lender offers a free rate conversion	Sticking with your lender and converting to a fixed rate	Those who think variable rates will rise in the near term
You’re ready to start making principal and interest payments on your loan	Refinancing with a new fixed-rate HELOC lender or converting your current HELOC to a fixed rate with the same lender	Those who are confident making full payments won’t cause a financial hardship

While refinancing offers benefits, there are costs to consider. New HELOCs often come with closing costs, appraisal fees, or origination fees.

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

Check out our guide to the best fixed-rate HELOCs if you’re considering refinancing.

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.

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Can I convert my fixed-rate loan back to variable if interest rates fall? 

If you converted your HELOC to a fixed-rate HELOC, it may be possible to return to a variable-rate loan if interest rates fall. 

✅ Yes, with certain HELOC lenders

Some lenders, such as U.S. Bank, are flexible and allow borrowers to switch from a fixed-rate loan to a variable rate. 

For some, it’s as easy as changing your options online, just as you can when switching from a variable rate to a fixed rate. Your lender might charge a penalty fee.

❌ No, but you can refinance your new loan

If you refinanced into a new fixed-rate HELOC, you can’t switch to a variable rate. Those are new financial agreements you must fulfill. You may, however, have the option to refinance those loans into new loans if interest rates drop. 

Ask your lender to renegotiate your rate

It never hurts to ask; if your lender knows you’re shopping for a new loan, it might be willing to reduce your rate. If rates have dropped since you locked in your fixed rate, consider calling your lender to ask about your options. The lender may have a conversion product available or be willing to offer a reduced rate in exchange for your loyalty.

FAQ

Can I refinance my HELOC into another loan type?

Yes, refinancing allows you to replace your HELOC with a fixed-rate HELOC, home equity loan, or cash-out refinance, which consolidates your HELOC and primary mortgage into one fixed payment.

Should I refinance my HELOC instead of converting it?

Refinancing is often the better choice if you want to consolidate debts or secure a lower interest rate. Converting may be simpler if you prefer to retain your current lender and avoid closing costs.

Recap of the best fixed-rate HELOCs