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Is a line of credit and a mortgage the same thing?

One is not like the other

Lines of credit and mortgages have similarities and big difference's but hey are not the same.

Line of Credit

  • Lines of Credit are secured by your home (HELOC), and you can access money when you need it.
  • Lines of credit often allow you the option to just pay the interest or make balloon payments, there is no set payment amount.
  • Interest rates on line of credit are variable rates and often higher than a fixed mortgage rate.
  • There are no term lengths associated with lines of credits.
  • Lines of credit are registered on the title of your home.


  • A mortgage is generally as set amount of money you borrow at one time.
  • There is a monthly payment associated with it.
  • Borrowers can choose a fixed rate or a variable rate.
  • You will have a monthly payment
  • You can borrow up to 95% of the property's value
  • Mortgages have terms and amortizations
  • Mortgages have penalties if you break your term.
  • Mortgages are registered on title of the property.