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, your fixed or adjustable rate loan is secured by the equity in your home. You'll repay this loan over an agreed time period by making monthly payments, like your original mortgage. The terms "home equity loan" and "second mortgage" can be used interchangeably.
Getting Your Home Equity Loan
The process for a home equity loan is similar to getting your current mortgage. You'll be pleased to know the closing costs are lower with a home equity loan, and although there is a higher interest rate than a traditional mortgage loan, the interest can be deducted from your taxes.
You will have to provide proof of your salary and have a positive credit score to qualify for a second mortgage. To figure out your home's market value, your lending institution will require a home appraisal. To explore your home equity/second mortgage choices, contact us at 214-663-5355.
Have questions about your home equity? Call us at 214-663-5355. Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234 answers questions about home equity every day.