A Fixed Rate Segment is choosing to take a portion of your available line of credit and putting it into a fixed-rate that has a fixed monthly payment based on the term selected. The terms are a maximum 15 years or remaining term of the 25 year loan, whichever is less. A Fixed Rate segment allows a person to have a fixed-rate loan that has the same monthly payment for a specific amount of time - making budgeting easier.

For example, if you remodeled a bathroom for $10,000 and chose five years for the term of this segment, you would make 60 monthly principal and interest payments that will be fixed for the term. As you make payments on the locked segment, that money (minus interest) becomes available in the line of credit portion of your SmartLine℠ Home Equity loan.