Line of Credit vs. Equity Loan

Kwik Mortgage Comapny offers two basic kinds of home equity loans. The most important difference is how
you receive your loan funds. With a home equity line of credit, you borrow the money as needed (up to the
credit limit). With a home equity loan, you get the entire loan amount right away.

Home Equity Line of Credit

Loan Funds Availability
Borrow money as you need it?up to the credit limit. Each time you pay principal it frees up that amount of your
credit line for later use.

Interest Rate
Variable rate. After the first 1 monthly billing periods, your rate varies monthly based on prime rate as
published in The Wall Street Journal plus a margin.

Payment
Varies monthly with rate and depends on how much you've borrowed against your credit line. During the 5 or
10 year draw period, you have the flexibility to pay interest only. After the draw period, your principal and
interest payment vary to pay off the loan in the remaining years

Loan Advances
As easy as writing a check for $250 or more

Rate Advantages
Lower interest rates than most unsecured credit lines (i.e., credit cards).

Tax Advantages
Interest is up to 100% tax-deductible

Other Advantages
Good safety net for unexpected expenses or emergencies.



Home Equity Loan

Loan Funds Availability
Get entire loan amount right away as a lump sum. Cannot reuse this loan

Interest Rate
Fixed rate. Payment stays the same for the entire term of the loan.

Payment
Principal and interest payment remains the same over the life of the loan

Loan Advances
Entire balance received at once.

Rate Advantages
Low payment options available through a variety of terms.

Tax Advantages
Interest is up to 100% tax-deductible

Other Advantages
Excellent choice for one-time planned expenses or to consolidate debts you already have.