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 or adjustable-rate loan that is secured by your home equity. You borrow a certain amount of money to be paid back monthly during a set time frame, just as you have done with your original mortgage agreement. A home equity loan also can be referred to as a second mortgage.

Getting Your Home Equity Loan

Getting your current mortgage loan is a similar routine to that of a home equity loan. Your closing costs (often two to three percent of the loan amount) are typically lower and, although the rate of interest is bigger on a home equity loan, the interest is tax deductible.

You will have to provide proof of your income and have a positive credit score to qualify for a home equity loan. A home appraisal is necessary to determine the property's current market value. To check on your home equity/second mortgage loan choices, 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!