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What is the difference between an equity line of credit and a second mortgage?

April 26, 2017equity line of credit second mortgage

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What is the difference between an equity line of credit and a second mortgage?

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An equity line of credit is money in an account that you can use as you need it and pay back at any time. The interest rate is usually variable and tied to the prime rate. For a second mortgage, you borrow a lump sum and pay it back over a period of years at a fixed interest rate.