Tapping into Your Home Equity

Have you considered tapping into your home equity to send a child off to college, or remodel your home? A home equity loan is a fixed rate or adjustable-rate loan that uses your home equity as collateral. You will repay your loan over an agreed time period by making payments monthly, like with your original mortgage. A home equity loan may also be referred to as a second mortgage.

Getting Your Home Equity Loan

You'll be familiar with the process as it is much like the process toward your first mortgage. The closing costs (often 2-3 percent of the loan amount) are usually smaller and, although the interest rate is more on a home equity loan, the interest can be tax deductible.

You will have to provide salary documentation and have a reasonable credit score to qualify for a second mortgage. To assess your home's market value, your lender will require an appraisal of your home. To check on your home equity loan choices, call us at 3032207500.

Have questions about your home equity? Call us at 3032207500. One Source Lending answers questions about home equity every day.