How is the interest rate calculated on a Home Equity Product?
Home Equity Line of Credit has a variable interest rate that is calculated by adding a preset margin (as defined in your Home Equity Line of Credit Agreement) to the Wall Street Journal Prime Rate. Your rate and payments will increase or decrease as the Prime Rate changes.
A Home Equity Loan has a fixed interest rate that is set at the time you close your loan, so your interest rate and monthly payments will not change with rate fluctuations.
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