Tapping into Your Home Equity

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 your home equity. You will repay the loan over an agreed time period by making payments monthly, just like your original mortgage loan. The terms "home equity loan" and "second mortgage" are often used interchangeably.

Getting the Loan

The steps toward a home equity loan are similar to getting your original mortgage loan. Some differences are though, that the interest rate with a home equity loan is usually more (with tax-deductible interest) with smaller closing costs.

If you would like to qualify for a second mortgage, you need to have a positive credit score and you must be able to provide documentation of your income. To figure out your home's current value, your lending institution will require an appraisal of your home. To check on your home equity/second mortgage loan choices, contact us at 2146635355.

Have questions about your home equity? Call us at 2146635355. We answer home equity loan questions questions all the time.