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. A home equity loan is a fixed rate or adjustable-rate loan that is secured by the equity in your home. Similar to your first mortgage, you borrow a specific sum of money to be repaid monthly over a certain period of time. A home equity loan may also be referred to as a second mortgage.
Getting the Loan
Getting your first mortgage loan is a process similar to that of a home equity loan. Your closing costs (often 2-3& of the loan amount) are generally lower and, although your interest rate is more on a home equity loan, the interest paid can be tax deductible.
You will have to provide salary verification and have a positive credit score to qualify for a home equity loan. A home appraisal will be needed to assess the home's current market value. To discuss your home equity/second mortgage loan 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!