How HELOC rates work.

The formula is the starting point.

This is a made-up pricing example, not Shawn’s rate or a lender offer. A 1-point change in the index would change this simple formula by 1 point, but a floor, promotional term, or adjustment schedule could affect the actual rate.

Learn to compare margins →

A market benchmark is not a personal quote.

A published prime rate is a reference point. Ask which index your agreement uses, how it is observed, and when changes take effect. Your quote also depends on the lender’s terms and review of your borrowing and property details.

Turn the rate into dollars.

At a hypothetical 8%, $20,000 outstanding produces about $133.33 in monthly interest using a simple rate ÷ 12 estimate. A $50,000 balance produces $333.33; $100,000 produces $666.67. Paying only that interest leaves the borrowed amount owed.

Use the payment calculator →

Read these five lines before comparing.

1. The ongoing formula: index + margin, including floors and caps.
2. The introductory end date: when the initial price changes.
3. The fee schedule: opening, ongoing, conversion, and closing charges.
4. The payment method: what reduces principal, and when.
5. The borrowing conditions: required draws and discount requirements.

A quote comparison gets more useful when both lenders are answering the same question. Set one planned balance and timeline first. Then compare the obligations, including any costs that are missing from the headline.

Use the quote worksheet →

Get from research to your situation.

Bring the amount you plan to use, the property state, the approximate timing, and the questions you want answered to Shawn. Use the lender’s secure process for sensitive documents. A conversation can clarify the next step; it does not itself establish approval or a locked rate.