Is Paying Off Your Mortgage With a Home Equity Loan a Wise Move?

A home equity loan provides a lump sum based on home equity, while a HELOC offers a revolving credit line. Both can be used to pay off a mortgage but involve interest and risk of losing the home if payments stop. Home equity loans have fixed payments and lump sums; HELOCs have variable rates, interest-only payments during draw periods, and flexible borrowing. Using these to refinance can lower payments if costs and risks, like rising interest rates, are managed carefully.