Available with your Woodstone HELOC
Choose the Fixed Rate Option if you want the peace of mind of knowing your rate and payment won’t go up as interest rates rise or you want to start paying off your home equity balance immediately, rather than waiting until the end of the interest only period.
Let’s say your HELOC credit limit is $80,000, and you borrow $35,000 for an important purchase, such as a kitchen remodel. You now have the flexibility to choose the repayment option that works best for you:
- Make interest-only payments for the remainder of your draw period then make fully amortized payments for the 20-year repayment period.
- Fix your rate and make principal-and-interest payments for 15 years. As you make principal payments, the amount you have available to borrow increases again.
The next time you want to borrow for a large purchase—or at any time during your draw period—you can again choose either a variable rate or fixed rate loan.
- Fix the interest rate on all or a portion of your HELOC balance at closing and/or anytime during the draw period.
- Every time the fixed rate option is exercised, a unique loan with its own term and interest rate is created. This unique loan is called a fixed rate advance (FRA).
- As balance is paid down, equity is freed up to be drawn again
- Up to three Fixed Rate Advances may be open at one time
- Fixed rate balance may not be converted back to variable