Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes. A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home’s value and pay that amount back in monthly installments.

A fixed rate can protect you when general interest rates are rising. However, with some fixed-rate HELOCs, you can end up paying a higher rate than necessary if rates fall.

HELOC rates are low compared to other borrowing options, after all, but they are typically variable, meaning that the rate on your HELOC can change over time. However, some lenders allow you to take all or a portion of your HELOC and lock in rates with a fixed-rate option.