equity line vs. equity loan
Home Equity Line of Credit
You will receive "equity line" checks that that can be used to advance yourself a loan up to your approved available balance.
Simply write the loan amount you need and deposit it into your money account.
Some lenders will also provide credit card access to your equity line account. You can use it like a credit card, where all transactions will be posted to your equity line account.
Home Equity Loan
The home equity loan is a fixed rate loan. The money is advanced to you when you close your equity loan.
This advance is an one-time loan, with no further advances made on your account.
about rate types
Equity Line Rates are Variable
Equity line rates are variable and indexed to the PRIME RATE or other rate index.
This means that your rate can increase or decrease whenever the PRIME RATE changes.
Equity Loan Rates are Fixed
Equity loan rates are fixed and will never change.