What is a Home Equity Loan?
Have you considered tapping into your home equity to send a child off to college, or remodel your home? With a home equity loan, a fixed or adjustable rate loan is secured by the equity in your home. You borrow a sum of money to be paid back monthly over a set period of time, like you original mortgage. A home equity loan might also be referred to as a second mortgage.
Getting Your Home Equity Loan
The steps toward a home equity loan are similar to getting your existing mortgage. Your closing costs (usually two to three percent of the loan amount) are generally smaller and, although the rate of interest is higher on a home equity loan, the interest is tax deductible.
If you would like to qualify for a second mortgage, your credit must be in good standing and you need to be able to verify your salary. A home appraisal will be necessary to calculate the property's current market value. To explore your home equity/second mortgage options, contact us at 214-663-5355.
Have questions about your home equity? Call us at 214-663-5355. It's our job to answer home equity loan questions, so we're happy to help!