What is a Home Equity Loan?
Perhaps you are considering tapping into your home equity to renovate your kitchen, or take care of the balance on a credit card. With a home equity loan, a fixed or adjustable rate loan is secured by the equity in your home. You will repay your loan over an agreed period of time by making monthly payments, like with your first mortgage. A home equity loan also can be called a second mortgage.
Getting the Loan
Getting your first mortgage loan is a process similar to that of a home equity loan. Some distinctions are though, that the interest rate with a home equity loan is usually higher (with tax deductible interest) with smaller closing costs.
If you'd like to qualify for a second mortgage, you will need a positive credit score and you must be able to document your income. A home appraisal is necessary to calculate the property's current market value. To discuss your home equity loan options, call us at 214-663-5355.
Have questions about your home equity? Call us at 214-663-5355. We answer home equity loan questions questions every day.