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Do You Lose Your Interest Rate When Getting a HELOC?

Learn whether your mortgage interest rate changes with a HELOC and how HELOC rates work independently for home equity borrowing.

Published

Video transcript

No, you do not lose your interest rate with a HELOC. A Home Equity Line of Credit (HELOC) has a distinct interest rate from your primary mortgage. It remains separate unless you refinance or consolidate your loans. This allows you to utilize your home's equity without altering your primary mortgage rate. Keep in mind, HELOC rates are variable and can change over time.

Questions and answers

  1. Does getting a HELOC change my mortgage interest rate?

    No, a HELOC has its own separate interest rate and does not affect your primary mortgage interest rate unless you refinance or consolidate your loans.

  2. Are HELOC interest rates fixed or variable?

    HELOC interest rates are typically variable, meaning they can change over time based on market conditions.

  3. Can I lose my original mortgage rate by getting a HELOC?

    No, your original mortgage rate remains unchanged when you obtain a HELOC because they are separate loans.