Holy H.E.L.O.C. Batman! Que es esto! REVISED

[Joshuam R.]

This is my question, I am looking at these two products, what are your thoughts?

Fixed-Rate Equity Loan

The best part about our Fixed-Rate Equity Loan is stability. This is a great option if you’re in need of a specific amount of money for a one-time expense. You'll get a lump sum amount and enjoy a fixed rate for the life of the loan with set monthly payments.

Loan Details:

• Borrow up to 100% of your home's equity
• Min/Max Loan Amount: $10,000 - $500,000
• Fixed rate for the life of the loan
• No application or origination fee

Rate:

APR as low as:5.740%

Term:

5-, 10-, 15-, 20-year

VS

Home Equity Line of Credit

Our Home Equity Line of Credit offers flexibility. If you expect to have ongoing expenses, this option is for you. Borrow as you need, when you need it, up to your maximum credit limit.

Loan Details:

• Borrow up to 95% of your home’s equity
• Min/Max Loan Amount: $10,000 - $500,000
• Variable rate, based on the U.S. Prime Rate
• No application, origination, annual or inactivity fee
• Interest-only option available

Rate:

APR as low as:5.750%

Term:

20-year draw period, followed by 20-year repayment period

[Matt Devincenzo]

I've said this before...on a HELOC my focus is on flexible short term funding. With that in mind I'd compare rate/term against a HML, and the HELOC is much more affordable. I want the largest HELOC balance possible and don't really care if the rate is high, because 1) I only pay interest when drawn 2) it's intended to be short term (for my use). Alternatively I don't want a fixed equity loan because then I'm paying interest all the time, not just when I'm using the funds.

That's my 0.02.