Product Comparison

Find the right home equity account for your financial needs: a loan or line of credit.

Home Equity Loan	Home Equity Line of Credit
Interest rates are locked in over the life of the loan for most Second Mortgages. Homeowners don’t have to worry about unexpected rises in their mortgage monthly payments.	If you don’t know for sure how much money you will need over a period of time, a HELOC allows the borrower to take advances as they need. As you pay it back, it frees up more credit.
A borrower will typically enjoy lower monthly payments since the period of the Second Mortgage is usually longer, such as 15 years.	Borrowers typically have lower monthly payments versus a Second Mortgage.
Since a Second Mortgage loan is a one-time, lump sum, some homeowners may find it easier to avoid additional debt versus a HELOC where you can continuously draw down money from the loan	Borrowers usually enjoy a lower interest rate since this is a variable cost loan.

Home Equity Loan	Home Equity Line of Credit
You prefer fixed monthly payments that won’t change.	A lower interest rate is more important than the possibility of an increase in your monthly mortgage payment.
A longer loan term is necessary.	It is uncertain how much money you will need to borrow and when.

Home Equity Loan	Home Equity Line of Credit
Since Second Mortgage loans are fixed rate loans, if interest rates fall, the borrower will end up paying more in interest versus a HELOC which usually uses a variable rate that adjusts downward.	A borrower will not have the security of locked in payments. As interest rates change, so will the monthly payment.
Since the life of the loan is longer, for example 15 years, you end up paying more in interest.	A HELOC has a shorter loan length which will require faster payment.
You only receive money one time, so if additional costs arise, the borrower would need to apply for a new loan or consider refinancing.