The Quick Read: A lender sizes a conversion by checking that your contract allows one, limiting the lock to the balance you have already drawn, and applying its own minimum, lock-count, and term rules, with the rest of the line staying variable, because no outside formula sets the amount and the lender’s own agreement controls it. The investor-property lines Lendmire arranges work differently, because their pricing floats and never converts to fixed.
- The conversion right has to exist in your original agreement. You cannot demand it later.
- The lender sizes the lock against the drawn balance, never the undrawn part of the line.
- Minimum lock amounts, caps on simultaneous locks, and term options set the real limits.
- Only the locked piece becomes fixed. Later draws and the unlocked remainder stay variable.
- On an investment-property line in Lendmire’s network, there is no fixed conversion to size.
What a Fixed Conversion Is (and What It Isn’t)
A fixed conversion is a feature of a variable-rate home equity line. It lets you take part of what you have already borrowed and freeze it at a fixed price for a set term. That piece turns into a small amortizing loan, and the rest of the line keeps floating.
How large a line the equity supports.
An equity line is sized by combined loan-to-value, occupancy, and credit — not by rental coverage. Switch the occupancy or the credit band and the ceiling moves with it.
Investment-property lines require a 700 minimum credit score; second-home lines start at a 640 minimum and primary-residence lines at 600, and the combined-LTV ceiling steps down as the credit band drops on primary-residence and second-home lines and holds on investment-property lines; the line cap steps down on primary-residence lines and holds at every tier on investment-property and second-home lines.
A debt-to-income ratio above 45% requires 680+ credit. Profiles under 640 are limited to single-family homes. At least 75% of the approved line is drawn at closing. Ceilings, floors, and caps update from Lendmire’s centralized guideline source.
Line estimate
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. The rate is an editable assumption; equity-line pricing is variable through both the draw and repayment periods and never converts to fixed. Occupancy and credit drive the ceiling together: an investment property tops out at 70% combined LTV (minimum credit 700, line cap $500,000); a second home tops out at 90% combined LTV (minimum credit 640, line cap $500,000), with the ceiling stepping down as the credit band drops (the cap holds at every tier); a primary residence tops out at 90% combined LTV (minimum credit 600), and its $750,000 maximum line is available only at 75% combined LTV or below with a 700-or-better credit profile (720 on the longer-runway program) and a full appraisal. Lines above $500,000 require a full appraisal. Credit, debt-to-income, property type, and full underwriting review all affect the final line.
It is a feature of the line, not a separate product. People often mix it up with a “fixed-rate HELOC,” which can mean two different things. One is a conversion option on a variable line. The other is a line that was fixed from day one. NerdWallet’s explainer on fixed-rate HELOCs notes that if you freeze the price on only part of the loan, later draws are variable again. It also says not all lenders offer the option, and those that do each set their own guidelines.
That last point drives everything below. When investors ask how big a conversion can be, the honest answer is that the agreement decides. Lenders draw on the same handful of inputs, though, and once you know them you can size your own request before you call anyone.
The Sizing Sequence, Step by Step
A lender runs a series of checks in a predictable order. The first check that fails ends the conversation, so the order matters. This is how the process typically runs across lenders that offer the feature.
Step 1: Does the right exist? The conversion option has to be written into the original line agreement. If it isn’t there, there is nothing to size. Many lines never had it.
Step 2: Is the account in good standing? Some lenders bar conversions on accounts with past-due history. A recent late payment can end the request before any math happens.
Step 3: Is the draw period still open? Lenders generally want the conversion made while draws are still allowed. Bankrate reports that some lenders let borrowers convert a portion of the outstanding variable balance, typically any time during the draw period. After the draw period ends, a refinance is the usual route.
Step 4: How much is drawn? The ceiling on any lock is the drawn balance. A lender does not convert credit you haven’t used.
Step 5: Does the amount clear the minimum? Lenders set a minimum size for each lock. If your drawn balance, or the piece you want to lock, falls below it, the request fails. The minimum exists because each lock becomes its own loan with its own servicing.
Step 6: Is a lock slot open? Most lenders cap how many locks can be open at once. If you already have your limit, you must pay one down to free a slot.
Step 7: Does the locked share fit any cap? Some agreements limit what portion of the line can be locked at one time. Others rely on the drawn balance alone.
Step 8: Does the term fit? You pick a fixed term from the lender’s menu. A fixed term generally cannot outrun the point where the line itself matures, so a lock requested late in the draw period may have fewer term choices than one requested early.
Step 9: Set the price and payment. The fixed price is set on the conversion date from an index plus a margin plus any lender add-on. The locked piece then carries a principal-and-interest payment, and the rest of the line keeps its own minimum payment.
Underwriting at this stage is usually light. The credit decision was made when the line was opened, and many locks do not trigger a new application or appraisal. Treat that as common, not guaranteed, because a lender can require a fresh review.
The Inputs That Set the Amount
Here is the same sequence as a quick reference. Read your own agreement against it.
| Input | What it controls | Effect on size |
|---|---|---|
| Drawn balance | What is available to lock | Hard ceiling |
| Minimum lock | Smallest allowed conversion | Floor on each lock |
| Open lock slots | How many locks can exist at once | Limits splitting |
| Locked-share cap | Portion of line that can be fixed | Optional ceiling |
| Term options | Length of the fixed payoff | Shapes the payment |
| Account status | Eligibility to convert at all | Can block the request |
Market lenders publish a wide spread on minimums and lock counts. Nothing sets a standard, so this article leaves those dollar figures out. Your agreement has your numbers.
Worked Example A: Lock the Whole Drawn Balance
These figures are modeled assumptions, expressed as shares of the credit limit so the arithmetic stays visible. Picture a line where you have drawn 80% of the limit for a rehab and want predictability on all of it.
The lender checks that the contract allows conversion, that the account is current, and that the draw period is open. The drawn balance is 80% of the limit, so that is the most you can lock. You ask to lock all of it and choose a term from the menu.
On many lines, locking part of the line shrinks the available limit by the locked amount. After this lock, you have 20% of the limit left to draw, and it stays variable. The locked 80% now amortizes. Each payment includes principal, so the monthly obligation is higher than the old interest-only draw payment, but it is steady. As principal is repaid, the available limit typically replenishes by the same amount.
Worked Example B: A Partial Lock With a Later Draw
Say you have drawn 60% of the limit. Part of it funded a purchase you’ll hold for years. Part was a short-term bridge you expect to repay soon. That difference should drive how you size the lock.
You lock 30% of the limit, the long-term piece. Now 30% is fixed, 30% is still variable and drawn, and the available limit is 40%. You keep the bridge portion variable so you can repay it without touching the fixed loan.
Later you draw another 10%. That draw is variable, so the variable balance rises to 40% and the available limit falls to 30%. Then you decide a second lock makes sense and convert 20% of the limit out of the variable balance. Fixed is now 50%, the variable drawn balance is 20%, and the available limit is 30%.
This only works if a second lock slot is open and the 20% clears the lender’s minimum. A simple rule helps when choosing the split. Lock the money tied to a known, long-lived use. Leave variable what you plan to repay or keep reborrowing.
Where the General Rule Breaks
The balance is below the minimum. A drawn balance smaller than the lender’s minimum cannot be converted at all. The fix is to draw more first, which may not make sense, or to skip the lock.
You ask for more than you’ve drawn. The lender will cap the lock at the drawn balance. It cannot convert undrawn credit.
You draw after locking. New draws are variable. A lock never turns the whole line fixed.
You request a lock near the end of the draw period. Fewer term options may remain, and the window may close before a request is processed. Interest keeps accruing at the variable price until the lock takes effect.
The lender freezes or reduces the line. The CFPB’s HELOC booklet says lenders can generally freeze or reduce a line if the home’s value falls or the borrower’s finances worsen. That puts your undrawn variable portion at risk. It does not unwind a locked loan.
The line has no conversion option. Credit Karma notes that fixed-rate HELOCs are less common and may carry different requirements than variable ones. Some lenders also restrict or exclude investor-property lines entirely.
What the Federal Rules Say (and Don’t)
Federal law deals with disclosure, not sizing. Under the home equity plan rule at 12 CFR 1026.40, a plan that lets you repay all or part of the balance at a fixed price over a set period during the draw period must disclose that feature. The rule does not say how large a conversion can be, what it costs, or how it is underwritten. Those are contract terms, which is why two lines can behave very differently.
What This Means for a Rental Investor
An investor who drew on a line for a renovation or a down payment can use a lock to fix the cost of that draw. That helps when you model rental cash flow, and it helps even more if a DSCR first mortgage sits beside the line. DSCR compares a property’s rent to its full monthly obligation, so a floating second payment makes the picture harder to forecast. For the first-mortgage side, Lendmire’s complete DSCR loans guide walks through how that ratio works.
The trade-off is real. The CFPB booklet says fixed options usually cost more than the variable price, and the amortizing payment runs higher than interest-only. Bankrate adds that fixed options may carry higher fees. A lock buys predictability, not savings.
One more point deserves honesty. Clearing a coverage ratio is not the same as having positive cash flow. Repairs, vacancy, management, and utilities sit outside the DSCR calculation, and a locked payment is one more obligation to carry.
How Investment-Property Lines in Lendmire’s Network Work
On this point, the network’s investment line differs from what you read in most consumer explainers. Lendmire is a broker. It arranges these lines through select wholesale partners and is never the lender. Availability is limited to Lendmire’s 16 full-service states, which is narrower than its DSCR footprint of 41 markets, including Washington, D.C.
The investment-property line has no fixed conversion. Pricing floats through both the draw period and the repayment period and never converts to fixed. The structure is a 5-year interest-only draw followed by a 25-year fully amortizing repayment, with at least 75% of the line drawn at closing. Investment lines carry a maximum 70% CLTV, a 700 minimum credit score, and a maximum line of $500,000. Every figure is subject to lender guidelines and full file review.
Lines on a primary residence or second home are a separate matter. They also float and never convert to fixed. Their ceilings and draw structures differ, and a few borrowers are surprised that title must sit with the individual or a revocable living trust, not an LLC. A property already deeded to an LLC needs a vesting change, or a DSCR cash-out refinance instead.
So there is nothing to size on a network investment line. The decision is whether a floating line fits your plan at all. If an investor wants a fixed payment on a rental, the practical routes are a fixed second lien or a DSCR cash-out refinance. On a standard rental, a DSCR cash-out refinance tops out around 75% LTV across most of the network, and about six months of seasoning is the common expectation. Subject to lender guidelines, of course.
For more on the mechanics behind these ideas, Lendmire has covered fixed-payment conversion rules during the draw period and, separately, whether a HELOC balance can convert to fixed at all.
Key Terms Defined
Draw period: The early stretch of a line, often with interest-only payments, when you can borrow, repay, and borrow again.
Fixed conversion (lock): A feature that freezes part of the drawn balance at a fixed price for a set term.
Sub-loan: The locked piece, which amortizes with its own payment while the rest of the line stays revolving.
CLTV: Combined loan-to-value, meaning all loans on the property divided by its value.
Minimum lock: The smallest amount a lender will convert in a single request.
DSCR: Debt service coverage ratio, which compares a rental’s income to its full monthly obligation.
A Pre-Request Checklist
Before you ask for a lock, pull these from your agreement and your account:
- The clause that grants conversion, or the absence of one.
- Your drawn balance and available limit today.
- The minimum lock and the number of open locks allowed.
- Available terms and the date your draw period ends.
- Any conversion fee and how the fixed price is set.
- Whether you plan more draws, which stay variable regardless.
If you are weighing a line against a refinance, run both options against your rent coverage before choosing.
Frequently Asked Questions
Can I lock more than I have drawn?
No. Lenders size a lock against the drawn balance, not the undrawn line. If you want to fix more, you would need to draw more first, and that only makes sense if you need the funds.
What happens to the part of the line I don’t lock?
It stays variable and stays available to borrow against, less the locked amount on many lines. Later draws are variable too. The line’s minimum payment still applies alongside the locked loan’s payment.
Is a conversion free and automatic?
Not necessarily. It depends on the agreement, the lender’s minimums, and any fees. Many locks skip a new application or appraisal, but that is lender-specific and not guaranteed.
Can I convert after the draw period ends?
Lenders generally require conversion while draws are still open. After that, a refinance or a fixed second lien is the usual route.
Does an investment-property line in Lendmire’s network offer a fixed conversion?
No. Pricing floats through the draw and repayment periods and never converts to fixed. The line runs a 5-year interest-only draw and a 25-year repayment, subject to lender guidelines and file review.
Next Steps
If you are considering a home equity line and want to see how the numbers work, Lendmire can help you compare HELOC options based on the property, the equity available, credit profile, combined leverage, and your goals. The site’s illustrative calculator gives a rough estimate, not a quote.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage that arranges home equity lines of credit through wholesale lending partners in its 16 full-service states. Lines on primary residences, second homes and investment properties are each reviewed individually by the lender under the program’s occupancy, credit and combined-loan-to-value guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. NerdWallet: Fixed-rate HELOC
4. Credit Karma
5. CFPB: Regulation Z § 1026.40
6. Bankrate: HELOC with fixed rate option
This article is part of Lendmire’s HELOC & home equity loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Should You Pick a Fixed Home Equity Loan Over a HELOC? · HELOC Fixed-Payment Conversion Rules During the Draw Period · HELOC Payoff Rules for Selling Before the Draw Period Ends
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.