We are going to apply for a home equity....need someone who has BTDT

Do we apply for a loan or a line of credit? What is the difference?

TIA

Re: We are going to apply for a home equity....need someone who has BTDT

I believe with a loan you get one check and have set monthly payments at a fixed interest rate. With a line of credit, you can access with a checkbook so the balance will fluctuate as will the monthly payments.

Re: We are going to apply for a home equity....need someone who has BTDT

I do Home Equity's at Wamu. A loan is a fixed rate and fixed payment. You get a check for the full amount.

A Home Equity Line of credit allows yiou to take a line out on your house and use it as you need it. You payments will go up and down as will your rate since it will be variable. Wamu has a great product that allows you to take out a line of credit and fix a portion (or the whole thing) That locks your rate and your payments. As you pay it back it goes back to your line so if you need money in the future you have it.

Re: We are going to apply for a home equity....need someone who has BTDT

we got a line of credit because we didnt need all the $$$ up front. We also wanted a line of cash available for us in case of something big.

Re: We are going to apply for a home equity....need someone who has BTDT

A line of credit is similar to a credit card. It allows you to up to a certain amount of money whenever you need it. There's usually a minimum payment due each month, with the option to pay off as much of it as you want.

Loans are a lump sum and have a fixed monthly payment that you pay off over a predetermined time.

I've done a line of credit in the past. I just feel they are more flexible.

I did mine through ING and it was a breeze.

Re: We are going to apply for a home equity....need someone who has BTDT