FICO is a credit scoring scale used by many lenders that use a risk-based system to determine the possibility that an applicant will fail to pay back a loan. Your FICO score is a key factor in determining the size and type of HELOC loan you qualify for and the interest rate you will be charged. The FICO scoring scale goes from 450 to 850 with higher scores being better.

The FICO credit scoring system was developed by the Fair Isaac Company to determine the possibility that the borrower may default on financial obligations to the mortgage lender. The FICO acronym is reference to Fair Issac Co.

A federal law enacted in 2005 makes it possible for consumers to obtain a copy of their current credit report (and FICO score) free of charge.

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FRLO - fixed rate lock option is becoming a more and more common feature orf HELOC loans as interest rates rise. The FRLO feature gives borrowers the ability to fix the rate, payment, and term on all or a portion of their HELOC, while keeping the variable rate line of credit open for additional use. As the FRLO loan principal is repaid, the line will increase and become available for use at the current variable rate. Specific FRLO terms vary by lender. In one example, the minimum FRLO amount is $10,000.00, with regular principal and interest payment and a term of no more than 10 years, not to exceed the maturity date of the mortgage.

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