Equity Line of Credit vs New 1st Mortgage.

[David Link]

Home Equity Line of Created vs a new 1st Mortgage on my home.

A banker just suggested to me I might consider taking out a new 1st Mortage on our paid off home, rather than taking a Home Equity Line of Credit - to use to purchase Real Estate Investment Property.  Because the rates will be better.  However this also means I need to start paying interest on the whole lump some, vs only what I need at this time from the Home Equity.

I was wonder what other people's thoughts where on this?

Thanks.