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HELOC Fixed Rate Option




With no closing costs and interest rate lock options, there’s no better time to apply for a line of credit! 

A HELOC is a line of credit secured by the equity in your home. You can use all or a portion of your approved credit line at any time during the ‘draw period’ of your HELOC. The draw period is set up for a 10 year term and you are required to make at least a minimum monthly interest only payment based on the amount that you are borrowing. Similar to a credit card, once you repay what you’ve borrowed, you can use that available credit again whenever you need it.

After the draw period expires the remaining balance will automatically be amortized with principal and interest payments over a repayment period of 240 months. During this repayment term the rate will remain variable at the same margin to Prime as in your draw period. Payments will be adjusted with any rate change during this time by an amount necessary to repay the balance by the maturity date.

A HELOC is a great way to gain flexibility in the way you borrow and repay money, and because the loan is secured by your home, your interest rate may be lower than other unsecured credit options like credit cards.
People often use HELOCs to pay down higher-interest rate loans, or to finance home-improvement projects that may increase the value of your home, but you can use the money for anything you like, whenever you need it.

What is a HELOC Fixed Rate Option?

Normally, when you borrow from your credit line, you pay a variable interest rate and make interest only payments on the amount you borrow.   The rate is subject to changes in the Wall Street Journal Prime Rate, so it can fluctuate.  You may make principal payments at your discretion.

If you would like to have more structure to pay down the amount borrowed with a fixed rate and term, then the Fixed Rate Option is a great feature to use.  For a $50 fee*, you can lock a rate and term on all or a part of the amount you borrow.   You may have up to  5 different locks on your line of credit at any given time.  You can lock or unlock a portion of your borrowings at any time.  This gives you convenience, choice and control over they way you borrow funds.  Now that’s smart borrowing!

All interest rate locks expire at the end of the draw period and the interest rate cannot be locked during the repayment period.


Choose if and when to lock in a fixed rate, and switch back to a variable rate if you like. When locking in your rate, you choose the loan amount and term up to 5-10 years depending on the loan amount.

Here are a few things you can do with this line of credit:

A. You can unlock this rate for a $50 fee to lock in a new lower interest rate if available. You can also unlock and leave it at a variable rate.

B. You can unlock this rate for a $50 fee to consolidate with A (if unlocked) and lock in a lower interest rate if available. You can also unlock and leave it at a variable rate.

C. You can lock in a fixed rate for a $50 fee. You can also consolidate it with any other unlocked loan to be locked at one interest rate.

D. You can buy anything with this amount. Once funds are spent then you have options to leave it as variable or lock it in to a fixed rate. Or you can consolidate it with other parts of your HELOC that are unlocked.


Control your monthly payment with flexible repayment options, including interest-only payments on your variable-rate balances, and terms up to 10 years on fixed-rate loans.

Sample Line of Credit using Fixed Rate Options:

A. Fixed-Rate loan 10 yr. term: $15,000   

B. Fixed-Rate loan 5 yr. term: $8,500

C. Variable rate balance: $6,500

D. Available for use: $10,000    

Total: $40,000

Picture of pie graph illustrating the sample line of credit using fixed rate options


You choose how to access funds from your Home Equity Line of Credit:

  1. Equity Access Card: Access funds using your Equity Access debit MasterCard. Use your Equity Access Card anywhere MasterCard is accepted, up to $5,000 per day.
  2. By Check: Write a check drawn on your HELOC.
  3. Online/Mobile: Just ask us to add your HELOC to your online banking account, then log in and transfer money from your HELOC directly into another account.
  4. Telephone Banking: Call our telephone banking line to transfer funds from your HELOC into another account
  5. By Phone/In Person: Call or visit the bank to request that available funds be transferred into your checking or savings account, or request a bank check.

 Your available credit automatically increases as you pay back your loans. Making interest only payments will not reduce the balance or increase available balance.


  • No Closing Costs
  • Fixed rate options allow you to lock in consistent payment amounts if interest rates increase (fees apply).*
  • Use your credit line all at once or in increments, right away or at a later date.*
  • Available line is based upon a percentage of your LTV (loan-to-value) for qualified borrowers.
  • Interest may be tax deductible (consult your tax adviser).
  • Secured by the equity in your home.


  • Save Money ... Competitive Rates
  • Monthly Payments Are Based Upon Your Usage*
  • Flexibility ... Available All At Once or In Increments, Right Away or At A Later Date*
  • Convenience ... May Access via A Debit Card*

How do I sign up?

Contact First Merchants to schedule an appointment to begin the process.

*During the draw period.

Term: 10 year draw period followed by repayment period of 20 years on any remaining balance. Interest Rate: Interest rates will be based on Wall Street Prime; 3.50% APR as of 12/17/15. Maximum APR: 25%  Annual Fee: $75 will be charged annually and is waived the first year. Line can be closed at anytime with no early termination fee. Rates and Terms are subject to change.  Property insurance required. All rate locks expire at the end of the draw period. Subject to credit approval.


Have questions or need assistance? Just give us a call at 1.800.205.3464. Our Customer Service team is available weekdays from 7 a.m. until 8 p.m. ET, and from 9 a.m. until 3 p.m. ET on Saturdays.

Looking for a different number or an online form? Find it on our contact page.