I
A published benchmark used with a margin to determine the interest rate on many adjustable-rate products.
KEEP LEARNING
Put this term into context.
Use related guides, calculators, and magazine features to see how this concept affects real home-equity decisions.
CHANNELHomeownersExplore channel →
CALCULATORHELOC Payment CalculatorRun the numbers →
EDUCATIONEducation CenterBrowse guides →
MAGAZINEHELOC Expert MagazineRead magazine →
Related Education Guides
HELOC Rate Caps: What Can Change and How to Stress-Test the Payment
Rate caps can limit how quickly a variable HELOC rate changes, but they do not make the payment fixed. Learn how to read the…
Read guide →Home Equity Loan Closing Costs: What to Compare Beyond the Rate
A fixed rate is only one part of a home equity loan decision. Compare fees, term, payment, lien position and total borrowing cost.
Read guide →Home Equity Loans for Veteran Homeowners: When a Fixed Second Payment May Fit
For veteran homeowners who want a known lump sum, a home equity loan may provide a fixed-payment alternative to a revolving line of credit.
Read guide →Cash-Out Refinance Closing Costs and the Break-Even Question
Replacing a first mortgage can create a new payment structure and new closing costs. A break-even framework helps put the tradeoff into context.
Read guide →Related Magazine Features
Variable vs. Fixed: How Rate Structure Changes the HELOC–HELOAN Decision
HELOCs are commonly variable-rate while home equity loans are commonly fixed-rate, creating different types of payment uncertainty.
Read feature →Closing Costs, Fees, and Early Payoff: Comparing the Transaction Around the Rate
The quoted rate is only part of the HELOC-versus-HELOAN comparison; account fees, closing costs, early closure provisions, and holding period can change the result.
Read feature →Investor Scenario of the Month: $500,000 Rental, $225,000 First Mortgage, $100,000 Capital Goal
The recurring investor feature compares a DSCR HELOC, DSCR HELOAN or second mortgage, and DSCR cash-out refinance using a realistic rental-property scenario.
Read feature →