The longer you own your property and continue to pay on the loan, the more likely it will be that paying points will be advantageous for you. If you intend to hold the mortgage for only a short period of time, the cost you pay up front may exceed the benefit you will receive from obtaining a lower rate. Draws You can draw on a line of credit whenever you want to, up to its predetermined limit. You don't have to borrow the whole amount, as with an installment loan. And once your line of credit is approved, you don't have to re-apply unless you require a higher limit.
Interest is charged only on the amount that's withdrawn, calculated on daily balances.
To draw on a line of credit, you write a check against your account or use an ATM, just as you would with a regular checking account. The cost of borrowing money or the rate of return earned on lending money, expressed as an annual rate. The simple interest rate is sometimes called the stated interest rate. It is the amount of interest paid at the end of the loan term divided by the loan amount. The compounded interest rate is determined by the frequency of interest payments during a loan or deposit term.