Can I Refinance a HELOC?

You can refinance a home equity line of credit (HELOC), and doing so might help you land more predictable payments in the long run.

In many cases, refinancing can even be a smart move, especially if you want more predictable payments, a lower rate, or a different loan structure before your draw period ends.

Refinancing can mean swapping your existing HELOC for a new one, converting it to a fixed-rate home equity loan, or rolling it into a new primary mortgage with a cash-out refinance. The right path depends on your goals, timeline, and equity.

What is a HELOC, and How Does it Work?

A HELOC is a revolving line of credit secured by your home. It usually has a variable rate and two distinct phases: A draw period and a repayment period.

You can draw funds as needed up to your limit during the draw period, then repay during a separate repayment period when payments typically increase because principal and interest are due.

Most lenders cap total mortgage and HELOC balances to about 80% to 85% of your home’s value, subject to credit and income requirements. Strong credit and stable income generally improve approval odds and pricing.

Reasons to Refinance a HELOC

When a HELOC exits the interest-only draw phase and enters repayment, monthly payments can rise sharply.

Converting to a fixed-rate home equity loan or refinancing into a fixed mortgage stabilizes payments before that happens. Rolling your HELOC into another product, like a home equity loan, can lower total interest costs or create one predictable payment.

You can also refinance a HELOC to expand the amount of equity you can access if your equity has grown.

You can get an idea of how much home equity you have by using our calculator:

Common ways to refinance a HELOC

There are three common ways to refinance a HELOC, but which one you go with will depend on your personal situation and what you’re looking for.

Replace your HELOC with a new HELOC. Here, you refinance into a new variable-rate line, potentially with a better margin, lower fees, or a fresh draw period. This can also help you access more equity. This is useful if you still value flexibility.

Convert to a fixed-rate home equity loan. You swap revolving credit for a fixed installment loan, locking in a set rate and payment schedule. This is ideal if predictability matters and you’re nearing the end of your draw period.

Roll the HELOC into a cash-out refinance of your first mortgage. Here, replace your primary mortgage and HELOC with one new, larger mortgage, often at a fixed rate. This approach is helpful for simplifying into a single payment and potentially resetting the term.

Occasionally, borrowers move the other direction by refinancing a fixed home equity loan into a HELOC for flexibility when they expect rates to decline and plan to manage draws prudently.

Costs and qualification requirements for refinancing

A refinance comes with a price, and you’ll have to meet certain requirements to qualify.

Most lenders want you to retain roughly 20% equity after the refinance, demonstrate solid credit, steady income, and a manageable debt-to-income ratio. Lenders often limit total home debt to 80% to 85% of your home’s value with a metric called combined loan-to-value (CLTV). That cap includes both your mortgage and any home equity loans you have or are applying for.

Closing costs are often between 2% and 5% of the loan amount, but that varies by lender. Title, recording, and other fees can also vary by lender and product. You might also need to have an appraisal done, and common costs for that are between $500 and $700.

You’ll complete an application and credit check. Underwriting for HELOCs can be more conservative because payments can change with rates and with the shift from the draw period to repayment.

When refinancing a HELOC makes sense

Refinancing is most compelling when you want payment certainty, plan to stay in your home long enough to recoup costs, or can materially improve your rate or terms based on credit, income, and equity.

Timing strategy matters. If you expect rates to fall, keeping a HELOC or renewing one may preserve flexibility and let you benefit from potential decreases. If rates are rising and your draw period is ending, locking into a fixed product can protect your budget.

How to evaluate your refinancing options

Use this quick checklist to compare choices and run the numbers:

1. Clarify your goal. Is it lower payment, predictability, more cash, or consolidation?
2. Compare multiple lenders. Review rates, margins, fees, draw terms, and conversion options. Lower’s digital application makes apples-to-apples comparisons faster; see choosing the right home equity option for a framework.
3. Calculate the break-even point. Divide total refinance costs by expected monthly savings (e.g., $3,000 fees / $150 savings = 20 months).
4. Check eligibility. Confirm minimum equity, credit score, DTI (debt-to-income), and occupancy requirements for each product type.
5. Prepare documentation. Expect a home appraisal and to provide income, asset, insurance, and mortgage statements.
6. Stress test payments. Model payments at higher rates for HELOCs and across shorter terms for fixed loans.

Practical Steps to Refinance Your HELOC

1. Review your current HELOC’s balance, rate, draw end date, and repayment schedule.
2. Estimate home value and current equity; confirm your combined loan-to-value.
3. Gather income, asset, and debt documents to streamline underwriting.
4. Compare offers—including any conversion options from your current lender—and decide between a new HELOC, a fixed home equity loan, or a cash-out refinance.
5. Apply digitally for pre-approval with minimal credit impact; a full application will require a hard credit pull.
6. Confirm final terms, sign disclosures, and close.

Have an exit strategy before your HELOC amortization phase begins to avoid payment shock. If you’re unsure which path fits best, Lower’s specialists can walk you through scenarios and help you lock in a plan with confidence.

The Bottom Line

Refinancing a HELOC is possible, and it can be a prudent choice if you prefer a fixed rate and predictable payments.

Common ways to refinance a HELOC include refinancing into a fixed-rate home equity loan, rolling your HELOC and mortgage into one loan via a refinance, and even replacing your current HELOC with a new one to take advantage of higher equity,

Frequently asked questions about refinancing a HELOC

Can I refinance my HELOC if I have less than 20% equity?

Most lenders require at least 20% equity remaining after refinancing, but exceptions exist; ask lenders about portfolio or special-program options.

Will refinancing my HELOC hurt my credit score?

A refinance application usually triggers a hard inquiry, which can cause a small, temporary dip in your credit score.

Is it better to refinance my HELOC or convert to a fixed-rate home equity loan?

If predictability is your priority, a fixed-rate conversion helps; if you expect rates to fall and want flexibility, a HELOC may be preferable.

How quickly can I refinance a HELOC?

Digital lenders like Lower can sometimes close in as little as 10 days, but timelines vary based on appraisal availability, documentation, and complexity.

What fees should I expect when refinancing a HELOC?

Expect an appraisal, title/recording, and lender fees; cash-out mortgage refinances typically run 2–5% of the loan amount.