If you are considering a home equity line of credit, you might also want to consider a traditional second mortgage loan. A second mortgage provides you with a fixed amount of money repayable over a fixed period. In most cases the payment schedule calls for equal payments that will pay off the entire loan within the loan period. You might consider a second mortgage instead of a home equity line if, for example, you need a set amount for a specific purpose, such as an addition to your home.

The best way to know if you are getting a good deal on a home equity loan is to compare different loan plans. Be sure and compare interest rates, late fees, and the general terms and conditions.