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 fixed- or adjustable-rate loan that is secured by the home equity you have built up is called a "home equity loan." You borrow a sum of money to be paid back with monthly payments over a set time frame, like you original mortgage. You can use the terms "home equity loan" and "second mortgage" to mean the same thing.
Home Equity Loan Specifics
Getting your first mortgage loan is a process similar to that of a home equity loan. Your closing costs (usually two to three percent of the loan amount) are generally smaller and, although your rate of interest is larger on a home equity loan, the interest will be tax deductible.
In order to qualify for a second mortgage, your credit has to be in good standing and you should be able to document your salary. A home appraisal is needed to determine the home's market value. To explore your home equity/second mortgage loan options, call us at 303-220-7500.
Have questions about your home equity? Call us at 303-220-7500. It's our job to answer home equity loan questions, so we're happy to help!