Tap into Your Home Equity
Have you considered tapping into your home equity to send a child off to college, or remodel your home? A home equity loan is a fixed or adjustable-rate loan that uses the equity in your home as collateral. Similar to your first mortgage, you borrow a specific amount to be repaid monthly over a period of time. The terms "home equity loan" and "second mortgage" are often used interchangeably.
Getting the Loan
The process for a home equity loan is similar to getting your existing mortgage loan. You will be happy to know the closing costs are smaller with this loan, and although there is a bigger interest rate than a traditional mortgage, the interest can be deducted on your taxes.
You will have to provide income documentation and have good credit to qualify for a home equity loan. To figure out your home's market value, your lending institution will ask for a home appraisal. To explore your home equity loan choices, contact us at 2146635355.
Have questions about your home equity? Call us at 2146635355. Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234 answers questions about home equity every day.