What is the difference between an Equity Loan and another type of mortgage?
An Equity Loan is a line of credit that can be used, as you need it. You can use any portion of it at any time and pay it back with monthly payments. The interest rate is usually variable and is tied to the prime rate. Other types of second mortgages, such as a fixed Equity Loan are simple interest products. You borrow a lump sum and pay it back over a period of years with interest. The interest rate for these products is fixed.
