Tapping into Your Home Equity
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 certain amount to be repaid with monthly payments over a set period of time, like you first mortgage loan. The terms "home equity loan" and "second mortgage" are often used interchangeably.
Getting Your Home Equity Loan
The steps toward a home equity loan are similar to getting your first mortgage loan. Some differences are though, that the interest rate with a home equity loan is usually higher (with tax-deductible interest) with lower closing costs.
To qualify for a second mortgage, you must have a reasonable credit score and you need to be able to document your salary. A home appraisal is required to determine the property's market value. To talk about your home equity loan choices, contact us at 303-220-7500.
Have questions about your home equity? Call us at 303-220-7500. We answer home equity loan questions questions all the time.