I need to set up an adjustable rate HELOC (Home Equity Line of Credit) in MD. Adjustable rate mortgages (ARMs) use an index and margin to determine the current APR, and they also have an adjustment cap, lifetime cap, and a floor. The loan account type is only designed for fixed loans, where both the rate and the loan amount is fixed, meaning the rate doesn't change and you cannot add to the loan as the balance decreases. In that regard, HELOCs are similar to a credit card with a maximum limit or available line of credit. As long as there is credit available, you can pull funds from loan, which would require adding transactions to the loan to increase principal on the loan, decrease the limit/line of credit, and splitting payment into principal and interest. Unfortunately, the credit card type of account does not track the limit against the balance nor does it handle principal and interest payments as easily as a loan account.

I saw a post from 2009, raising similar questions/concerns regarding setting up a HELOC. The response was to use the credit card account type despite, all its deficiencies. Are there no plans to enhance the loan or credit card account type to better accommodate lines of credit?