Line of Credit
Lending & MortgagesA preset borrowing limit you can draw from as needed and repay over time, only paying interest on the amount used.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding line of credit helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how line of credit impacts your specific situation.