Home Mortgage – Quick Facts
Typically the initial loans you take out on your home is from a banking institution.
A lump sum of money is taken out and paid back in installments, with interest.
Refinancing your original mortgage is sometimes a better decision vs. having two mortgages.
Home Equity Line of Credit – Quick Facts
With a home equity line of credit, collateral for the loan is the equity in your home.
The bank approves a certain amount based on the value of the home.
Often times, a variable interest rate is used in accordance with market conditions.
Each month, you will only pay the interest.
With a home equity line of credit, take out only the money you need to use, which reduces the amount of interest you need to pay.