FRAO

Fixed Rate Advance Option (FRAO):

A Fixed Rate Advance Option is a feature assocaited with home equity lines of credit that allows you to lock in the interest rate on a particular sum of money currently borrowed. The advantage of this is in doing so you essentially lock that interest rate in and never have to worry about adjusting payments again. This is an incredibly useful feature for someone who just finished their home improvements for example, does not need to borrow any more on their HELOC, is ready to pay back, and doesn’t want to worry about market adjsutments. Best part, this feature is typicall free of charge if you work with the right lender. Be sure to ask your specialist about this option.

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