HELOC FAQs
Home Equity Lines, Home Equity Loans, Second Mortgage
HOME EQUITY LINE/LOAN
Just One Click = Today's HELOC Rates
What is the difference between
a traditional second mortgage and a home equity line of credit?
Both traditional seconds as well as home equity
lines of credit are technically considered second mortgages. With a traditional
second mortgage, the rate is typically fixed and all funds are paid out at
closing. The term of the mortgage could be anywhere from 15 to 30 years. With a
Home Equity line of credit, as the name implies, the funds are drawn from a
credit line account as needed and not paid out in a lump sum at closing. The
rate on the credit line is typically an adjustable (usually tied to the prime
rate index) and the term can be anywhere from 15 to 30 years. Home equity lines
have a draw period, typically occurring in the first 10-15 years, with the
remaining term on the loan referred to as the repayment period.
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Then in 1994 we created the first online loan application.
