text: is it a good idea to change from a mortgage to a loc? balance on mortgage is 120,000!?   depends on if your mortgage is a fixed rate or a variable rate mortgage. if it is a fixed rate, then no, b/c a loc is a variable.   so if its variable they can raise your rate up a certain amount of times a year, if it is a fixed rate your rate will not raise and remain the same.  fixed rate gives you security in knowing your payment will always be the same. if its variable the payment can go up up and up.