Mortgage Broker Company - Home equity line of credit vs home equity loan.

A home equity line of credit is a great way to finance any home improvement projects. The line of credit is secured by your home, which means your interest payment is tax deductible. The line of credit is relatively risk free for the lender, paperwork and closing costs are usually low key and the interest rate is usually near what your first mortgage is. Unfortunately some people keep using the money over and over and it is not paid off in a short period of time.

A home equity loan is an amount you only borrow once. Your payments and interest rates are fixed. Closing costs are higher than the equity line of credit, but you know what your payments will be and when the loan payments will be completed.