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 fixed- or adjustable-rate loan secured by the home equity you have built up 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. A home equity loan at times is also called a second mortgage.

Getting Your Home Equity Loan

Getting your current mortgage is a similar routine to that of a home equity loan. You'll be pleased to learn the closing costs are lower with this loan, and even though there is a higher interest rate than a traditional mortgage, the interest may be deducted from your taxes.

You will have to provide proof of your salary and have a positive credit score to qualify for a home equity loan. To assess your home's current value, your lender will ask for an appraisal of your home. To explore 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!