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While both sources of financing - home equity lines of credit and credit cards - are revolving, or open-ended, and therefore can be used for the same types of expenses, it is important to know the differences between them so you can use them as wisely as possible.

Here are some commonly used home equity terms.

While home equity loan products can offer money-saving opportunities for homeowners, attractive interest rates can be offset by the added expense of fees and/or closing costs. When comparing lenders' rates, be sure to find out if there is a discount for having the lender pay closing costs.

efore you apply for a home equity loan, first decide if a fixed-rate home equity loan (HEL) or a variable-rate home equity line of credit (HELOC) will better suit your needs. While a home equity loan offers you a fixed interest rate for a set amount to be repaid over a specified period of time, a home equity line of credit is more flexible - you can borrow what you need up to your approved credit amount at a variable rate that can adjust.

The internet is one resource you should take advantage of by doing your own research. It is a great way to check the current mortgage rates, search for home prices, look to see which lender offers the best rates, apply for a loan, or find a real estate agent. According to the National Association of Realtors (NAR), during 2005 nearly 77% of all households used the Internet to conduct their housing search. These sites were primarily used to:

Borrowers have may choices when shopping for the right lender. Choices include banks, mortgage brokers, home builders, and internet lenders. Each has its advantages and disadvantages, and rates vary from lender to lender.

Here is some commonly used mortgage terminology.

Mortgage rates differ substantially based on the location of the property and the type of product selected. What follows are therefore indicative rates only. They are just some of the most interesting rates for different mortgage products that are listed and marketed on the internet.

The word mortgage comes from the French word "mort" which means "death". While buying a home main mean financial death to some first time buyers in the current environment, mortgages don't need to be intimidating. Once you understand the products available, finding the best rate is easy.

Here are some commonly used mortgage terms and their meanings.

What's the difference between mortgage prequalification and mortgage preapproval? Which one is better?

Choosing a mortgage loan should seem like a straightforward process; you borrow money from a lender for a specified amount, for a set period of time, and pay it back. However, getting a loan you feel comfortable with, one that's flexible during good times and bad, can be a challenge.

One of the components a lender uses to help determine what loan amount to approve is your down payment. A down payment not only serves as a commitment on a borrower's behalf to make good on a loan, but also acts as a lender's guarantee to minimize risk in case a borrower defaults on a loan. The more of your own cash that you can put down for a loan, the easier it is to qualify for a higher loan amount or a lower mortgage payment.