With a Fixed Rate Home Equity Loan, the interest rate stays the same for the life of the loan. Your payment is based on the amount you borrow, your fixed interest rate, and your repayment term, which helps make your monthly principal and interest payments more predictable.
Although the rate does not change, interest is generally calculated on the unpaid principal balance over time, not simply as one flat charge on the original loan amount. As you make payments, more of each payment may go toward principal and less toward interest.
If you have questions about how a Fixed Rate Home Equity Loan works, connect with a Home Equity Specialist at People Driven Credit Union.
