Home / HELOC / A line bends. A fixed second does not.
Updated September 2026
HELOC guide
A line bends. A fixed second does not.
A HELOC lets you draw, repay, and draw again during the draw period. You pay interest on what you took, at a variable rate, usually Prime plus a margin. A fixed home equity loan gives you the full amount once and a payment that does not float. Pick the line when the costs show up in pieces, like a renovation. Pick the fixed second when you know the amount and want one payment. Both sit behind the first mortgage. Neither is a cash-out refinance. Availability of the fixed second depends on the screen. We will not rename a HELOC and pretend the rate is fixed.
Sending a file is not an approval and not a credit pull. We text the same business day. We do not call. If we can structure it, we name the door. If we cannot, we say so.
The screen
| HELOC | Fixed second | |
|---|---|---|
| Cash | Draw as needed | One lump sum |
| Rate | Variable | Fixed |
| Payment | Changes with the balance and the rate | Set payment |
| First mortgage | Stays | Stays |
What we fund
- Projects with a fuzzy final cost
- A known payoff, like a single debt
- Owners protecting a low first-mortgage rate
What we still need. Short list.
- The first mortgage balance, rate, and whether it can stay.
- A value we can support, and the cash you actually want.
- The property state. HELOC is only GA, FL, TN, AL, NC, and SC.
- Income path: full doc, bank statements, or rent on a DSCR HELOC.
Questions
Can I fix the rate later?
Some lines offer a fixed-draw option. It is a feature, not a promise on every HELOC. Ask before you count on it.
Which one is cheaper?
The one that matches how you spend. A full draw on day one can make the fixed loan simpler. A slow project wastes interest if you borrow it all now.
Do both need the same equity?
Usually the same combined LTV screen, about 80 to 85%.
Related
These are the guidelines we screen. They are not a promise that your file hits the maximum. Credit-event seasoning, occupancy, and property condition still have to be confirmed. Not a commitment to lend. We text. We do not call.