What If Rates Go Up?
Simulate future interest rate hikes and see if you can still afford your HELOC payment.
Interest Only HELOC Calculator - Rate Rise Simulator
HELOCs usually have variable interest rates tied to the Prime Rate. If the Fed raises rates, your payment goes up immediately. This simulator helps you "stress test" your finances by showing exactly how much your interest-only payment would increase in different rate hike scenarios.
Simulate Rate Hikes
Current Payment
$354
at 8.50% rate
New Payment
$438
at 10.50% rate
A +2.00% rate hike would increase your monthly cost by:
+$83/mo
That's an extra $1,000 per year in interest alone.
Frequently Asked Questions
How often can my HELOC rate change?
Most variable-rate HELOCs adjust monthly or quarterly based on the Prime Rate. If the Federal Reserve raises rates, banks typically pass that increase on to HELOC borrowers within one billing cycle.
Is there a limit to how high my rate can go?
Yes, most HELOC contracts include a "lifetime rate cap" (often around 18% or higher) and sometimes a "periodic rate cap" limiting how much it can change at once. Check your loan documents for your specific caps.
How can I protect myself from rate hikes?
You can: (1) Pay down your balance aggressively to reduce the principal subject to interest, (2) Ask your lender about a "fixed-rate lock" option to convert part of your balance to a fixed rate, or (3) Refinance into a fixed-rate Home Equity Loan.