What is a Home Equity Loan?
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 that is secured by the home equity you have built up is called a "home equity loan." You borrow a lump sum of money to be paid back monthly during a set period of time, similar to original mortgage loan. A home equity loan may also be referred to as a second mortgage.
Getting Your Home Equity Loan
The process for a home equity loan is similar to getting your existing mortgage loan. You will be happy to know that the closing costs are lower with a home equity loan, and even though there is a larger interest rate than a traditional mortgage, the interest may be deducted from your taxes.
To qualify for a second mortgage, your credit has to be in good standing and you must be able to verify your income. To determine your home's market value, your lending institution will ask for a home appraisal. To talk about your home equity loan choices, call us at 303-220-7500.
Have questions about your home equity? Call us at 303-220-7500. One Source Lending 303-220-7500 answers questions about home equity every day.