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 uses the equity in your home as collateral. You borrow a lump sum of money to be paid back with monthly payments over a set period of time, just as you have done with your original mortgage agreement. A home equity loan at times is also called a second mortgage.

Getting Your Home Equity Loan

You will be accustomed to the process as it is a lot like the process toward your existing mortgage. Some differences are though, that the interest rate with a home equity loan is usually more (with tax deductible interest) with smaller closing costs.

You will have to provide proof of your salary and have a positive credit score to qualify for a home equity loan. To figure out your home's market value, your lending institution will ask for an appraisal of your home. To explore your home equity options, call us at 2146635355.

Have questions about your home equity? Call us at 2146635355. It's our job to answer home equity loan questions, so we're happy to help!