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? A home equity loan is a fixed rate or adjustable rate loan that uses your home equity as collateral. As with your first mortgage, you borrow a specific sum of money to be repaid monthly over a period of time. People often use the terms "home equity loan" and "second mortgage" interchangeably.

Getting Your Home Equity Loan

You will be familiar with the process as it is much like getting your current mortgage. Your closing costs (often 2-3& of the loan amount) are usually lower and, even though your rate of interest is more on a home equity loan, the interest will be tax deductible.

To qualify for a second mortgage, you need to have a positive credit score and you need to be able to document your salary. To determine your home's market value, your lending institution will ask for a home appraisal. To check on your home equity/second mortgage options, contact 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!