What is a Home Equity Line of Credit vs. Fixed Home Equity Loan?
Both of these types of loans are second mortgages. The Home Equity Line of Credit is revolving. You are issued a checkbook to draw funds from the loan. You are billed interest only on the amount that you have drawn on. You have access to any unused portion of the credit limit. A Fixed Home Equity Loan is an installment loan. The rate is fixed, as is the term of the loan. You receive all of the loan funds at time of closing and you do not have ability to re-access the same funds. Metro’s home equity lines of credit also contain options to convert part or all of the outstanding balance into a fixed rate loan while still having access to the available credit balance.
