Question:

Can I get a fixed rate home equity loan (HEL)?

Answer:

Well, a fixed rate home equity loan (HEL) is the standard equity loan. While a HELOC will be a revolving open-end credit with adjustable rate, home equity loans do come with fixed rate more often than not.

Common Features of a Fixed Rate Home Equity Loan

Fixed rate home equity loan are usually closed-end, up to 100% and usually amortize in 15 years or so. However, adjustable rate and over equity HELs are possible. Over equity loans are not allowed in some states.

Fixed rate HELs can be offered with amortization periods ranging from 5 to 20 years. Shorter HEL term means lower rates but larger monthly payment. Sometimes the home equity loan will have a balloon payment attached after a fixed period expires.

Although home equity loans usually don't have prepayment penalties, watch out for one.

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