Home Equity Loans
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 will repay your loan over an agreed time period by making monthly payments, just like with your original mortgage loan. The terms "home equity loan" and "second mortgage" may be used interchangeably.
Home Equity Loan Specifics
You'll be familiar with the process as it is a lot like the process toward your first mortgage. You will be happy to learn the closing costs are lower with a home equity loan, and even though there is a bigger interest rate than a first mortgage, the interest may be deducted from your taxes.
If you'd like to qualify for a second mortgage, your credit must be in good standing and you must be able to document your salary. A home appraisal is necessary to determine the property's market value. To discuss your home equity/second mortgage options, contact us at 303-220-7500.