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 rate or adjustable rate loan that uses your home equity as collateral. You'll repay the loan over an agreed period of time by making monthly payments, like your first mortgage loan. A home equity loan is sometimes also referred to as a second mortgage.
Getting the Loan
Getting your current mortgage loan is a similar routine to that of a home equity loan. Some distinctions are though, that the rate of interest with a home equity loan is usually higher (with tax deductible interest) with smaller closing costs.
In order to qualify for a second mortgage, your credit needs to be in good standing and you should be able to provide documentation of your income. To figure out your home's current value, your lending institution will require an appraisal of your home. To discuss your home equity/second mortgage loan choices, contact us at 3032207500.
Have questions about your home equity? Call us at 3032207500. It's our job to answer home equity loan questions, so we're happy to help!