Mortgage Line of Credit also know as  Home Equity Line of Credit or Secured Line of Credit are Lines of credit secured against one’s property.   Whereas a traditional mortgage has fixed and interest payments, Mortgage Lines of Credit have only interest only minimum payments.  Naturally a client would eventually want to pay more then the interest and with the line of credit being completely open they can.

Benefits of Mortgage Lines of Credit are, Monthly minimum payment required is interest only so this can help with cash flow.   Mortgage is completely Open so there is no limit to mortgage payment and you can completely pay down the line of credit when you want.  The loan limit amount is always available to re-borrow back again.

This product is popular with clients who are self employed or on commission income who may have lean income months and then months where they make allot of income and therefore can be more aggressive with there payments.  Because the product is completely open it can benefit clients who may want to refinance their mortgage in the near future so do not want to lock up there mortgage or plan on selling there property.  You can set up a Mortgage Line of Credit against your property behind a fixed or variable mortgage and you do not necessary have to use your line of credit.  It can be set up for future use such as future investment or emergency fund.  You only pay on the amount draw down.

Mortgage Lines of Credit does offer the client greater flexibility and control of there mortgage but the client does need to manage this control and flexibility.