A home equity line of credit is similar to a credit card with a revolving amount of credit that can be paid down and accessed with some limitations.  Like many credit cards the interest rate on the home equity line of credit is a variable rate.  An important factor with these loans is that the rates can by and large adjust monthly.  The maximum rate caps on these loans are quite high and the rate adjustment periods are generally frequent.  These are adjustable rate mortgages and the adjustable rate mortgage calculator can be used to compare monthly payments and check the impact on the monthly payment should interest rates rise.

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