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. In a home equity loan, your fixed or adjustable rate loan is secured by your home equity. Similar to your first mortgage, you'll borrow a particular amount to be paid back monthly over a certain period of time. You can use the phrases "home equity loan" and "second mortgage" to mean the same thing.
Getting the Loan
The steps toward a home equity loan are similar to getting your original mortgage. Some distinctions are though, that the interest rate with a home equity loan is generally more (with tax deductible interest) with lower closing costs.
You'll have to provide salary documentation and have good credit to qualify for a home equity loan. To determine your home's market value, your lender will require an appraisal of your home. To talk about your home equity options, contact us at 303-220-7500.