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.

Mortgage

• 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.