It is a fixed rate.

It is in many cases. Please check with your tax advisor.

A home equity line of credit is a flexible account that allows for repeated borrowing without having to re-apply each time. A more traditional second mortgage loan provides you with a fixed amount of money repayable over a fixed period. Usually the payment schedule calls for equal payments that will pay off the entire loan within that time. You might consider a traditional second mortgage loan instead of a home equity line if, for example, you need a set amount for a specific purpose, such as an addition to your home.

In most cases, a recurring need for funds suggests the need for a home equity line of credit. A good example of this are tuition payments.