Home Equity Loans
Have you considered tapping into your home equity to send a child off to college, or remodel your home? A fixed- or adjustable-rate loan secured by your home equity is called a "home equity loan." As with your first mortgage, you borrow a specific sum of money to be paid back monthly over a period of time. The terms "home equity loan" and "second mortgage" are often used interchangeably.
Home Equity Loan Specifics
The process for a home equity loan is similar to getting your original mortgage loan. The closing costs (usually 2-3 percent of the loan amount) are generally smaller and, even though the interest rate is bigger on a home equity loan, the interest paid can be tax deductible.
If you would like to qualify for a second mortgage, you will need a positive credit score and you must be able to document your salary. A home appraisal is needed to calculate the property's market value. To check on your home equity loan options, call us at 303-220-7500.