What is a Home Equity Loan?
Do you want to tap into your home's equity to pay for a home remodeling project or to pay off a credit card? In a home equity loan, your fixed or adjustable rate loan is secured by your home equity. You will repay the loan over an agreed time period by making monthly payments, like your first mortgage. People often use the terms "home equity loan" and "second mortgage" interchangeably.
Getting the Loan
The process for a home equity loan is similar to getting your existing mortgage loan. You'll be happy to learn that the closing costs are lower with this loan, and even though there is a bigger interest rate than a traditional mortgage, the interest can be deducted on your taxes.
To qualify for a second mortgage, your credit must be in good standing and you need to be able to provide documentation of your income. A home appraisal is needed to calculate the property's current market value. To talk about your home equity options, contact us at 2146635355.
Have questions about your home equity? Call us at 2146635355. We answer home equity loan questions questions every day.